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WTI eases as US-Iran de-escalation signals curb crude risk
WTI is near $71.5 after hitting a fresh over two-week high of $75.73, with further downside capped by ongoing exchanges that could threaten supply.
WTI oil futures on NYMEX were slightly lower in European trading on Friday, trading near $71.50 as the contract extended a correction after posting a fresh over two-week high of $75.73 on Wednesday, according to FXStreet.
The move reflects pressure on crude prices amid signs of de escalation in the US and Iran restart, with a US official confirming technical talks with Iran continued even as President Donald Trump said a memorandum of understanding with Tehran was over. Trump also said he spoke with Iran, adding the country wants the deal badly, though he does not believe Iran will honor it, FXStreet said, citing CNBC.
FXStreet also pointed to the risk that the conflict is not fully paused, noting Iranian state media confirmed US forces struck several more locations in coastal Iran late Thursday, while the US military did not confirm the same. Continuing aggression would keep energy supply disruption fears intact, the outlet said, even as prices correct.
On demand, FXStreet tied the softer tone to concerns about interest rate hikes by global central banks, saying those worries could keep oil demand battered. The CME FedWatch tool showed odds of the Federal Reserve delivering at least one interest rate hike this year are marginally over 80%, according to the report.
Latest closeWTI crude $71.84 ▼2.3%