Oil Begins to Calm Down, Iran Becomes Next Catalyst
Oil prices began to stabilize after the previous day's steepest drop in six months, as the market digested two major factors: easing geopolitical risks and the ongoing commodity sell-off.
In the Asian session, WTI held around $62/barrel and Brent held above $66/barrel. Sentiment improved after Donald Trump said communication channels with Iran were open and talks on a new nuclear deal could move forward within days—in line with Tehran's signal that they were ready to "engage."
It's worth noting: yesterday's decline was not small. On Monday, oil fell more than 4% as the market began to shed the risk premium that had been attached to it when US-Iran tensions escalated. Brent closed at $66.30 and WTI at $62.14.
Pressure also came from a broader wave of commodity selling. Precious metals were bleeding after a sharp fall since Friday, and risk-off sentiment also dragged on energy—the market was quicker to take profits and more selective in entering new positions.
On the other hand, the market is also weighing the direction of global oil flows after Trump announced plans to reduce import tariffs to India to 18% following India's commitment to cut purchases of Russian oil. If Russian flows to India actually shrink, the supply landscape could shift—but for now, the primary focus remains on geopolitical headlines and commodity sentiment. (alg)
Source: Newsmaker.id
