Oil falls below $90 as Trump pulls back from threat to strike Iran

{"text":[[{"start":7.916,"text":"Oil prices fell below $90 a barrel on Tuesday for the first time since August, after US President Donald Trump said that renewed US attacks on Iran were “highly unlikely”."}],[{"start":18.265,"text":"Brent crude, the global oil benchmark, fell as much as 3.6 per cent to $89.21 a barrel before recovering to about $91.25 a barrel. West Texas Intermediate, the US benchmark, was down 1.2 per cent at about $85.90 a barrel."}],[{"start":34.895,"text":"The easing of prices came after Trump said late on Monday that there was “positive momentum” behind US-Iran negotiations, adding that “Iran militarily is over”. Before the Republicans’ historic defeat in last week’s US midterm elections, the president had threatened to “finish” the war by striking Iran again, which he said “would be very easy to do”."}],[{"start":55.288,"text":"Brent crude prices have now fallen more than 22 per cent so far in November, which, if it holds, would be the biggest monthly drop in prices since 2020."}],[{"start":null,"text":"

"}],[{"start":64.4,"text":"The fall in oil has boosted stock markets globally, helping them to rebound from last week’s sharp technology-led sell-off. The Stoxx Europe 600 index rose 0.9 per cent on Tuesday morning, adding to a 1.3 per cent increase on Monday. Japan’s Topix climbed 2 per cent on Tuesday."}],[{"start":83.12,"text":"“If there is further progress towards a US-Iran deal to end the conflict, it would help to sustain lower energy prices and ease pressure on major central banks including the Fed to keep hiking rates,” said Lee Hardman, senior currency economist at MUFG."}],[{"start":98.56,"text":"Global energy prices have soared this year, sparked by the de facto closure of the crucial Strait of Hormuz shipping lane after the US and Israel began their military campaign against Iran at the end of February."}],[{"start":110.32,"text":"Higher energy prices have prompted major central banks to reverse plans to cut interest rates this year, with most banks instead raising rates to tackle the risk of inflation. The Federal Reserve, European Central Bank, Bank of England and Bank of Japan have all raised rates this year."}],[{"start":123.92,"text":"But oil prices have dropped over the past week, following signs that US resolve to continue the war could be waning. Vice-president JD Vance pointed directly to the Iran war as the reason for the Republicans’ drubbing last week, raising hopes that further escalation might be less likely."}],[{"start":140.83,"text":"Government bonds have also strengthened in recent days, pushing yields lower as energy prices have fallen."}],[{"start":147.429,"text":"European government bonds — which saw some of the most brutal selling earlier in the year due to the region’s energy vulnerability — have rallied. The 10-year gilt yield is down 0.16 percentage points so far in November, trading at 5.13 per cent on Tuesday."}],[{"start":162.57,"text":"The 10-year Bund yield has fallen 0.06 percentage points in November to 3.26 per cent."}],[{"start":168.43,"text":"However, Evelyne Gomez-Liechti, multi-asset strategist at Mizuho, said that “with no formal deal confirmed and disruption around Hormuz not fully resolved”, she would be “wary” of adding to long positions in government bonds “purely on the back of cheaper oil”."}],[{"start":189.2,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1794311419_2192.mp3"}