Oil prices drop after Trump says that China can continue to buy oil from Iran

Oil prices fell sharply on Tuesday after President Donald Trump said that China could continue to buy oil from Iran, a sign that the United States reduces its maximum campaign to pressure the Islamic Republic in the wake of the ceasefire with Israel.

The global standard Brent $ 3.33, or 4.66 %, decreased to $ 68.15 a barrel by 10:18 am EST. United States crude oil It was the last $ 3.18, or 4.64 %, to $ 65.33 a barrel. Prices were closed by 7 % on Monday, as the oil market is betting that the conflict in the Middle East was over.

“China can now continue to buy oil from Iran,” Trump said in his post. Social media platform social truth. “We hope to buy a lot of the United States as well. It was a great honor to achieve this!”

Trump threatened in May Block any country The purchase of Iranian oil from doing business with the United States. China buys the vast majority of 1.7 million barrels per day, which usually exports Iran, according to data from KPLER.

Oil prices fell to the levels that were last seen before Israel began bombing Iran on June 13, as investors now believe that the risks are low that a major disturbance in the display in the Middle East.

The United States’s decision to join Israel and bombing three major nuclear sites in Iran during the weekend initially raised fears that Tehran would try to strangle oil exports from the Persian Gulf in revenge.

Instead, Tehran launched a missile attack on an American air base in Qatar that did not leave any victims, providing a bank more escalation. Trump announced a ceasefire agreement between Israel and Iran shortly.

The ceasefire was launched on the brink of collapse early on Tuesday, as Trump accused Iran and Israel of violating the agreement shortly after the validity. The President called for Jerusalem and Rivar to a ceasefire, while retaining unusually harsh words to Israel.

“I am not happy with Israel,” Trump told reporters on their way to the NATO summit in the Netherlands. “I am not happy with Iran either, but I am really unhappy if Israel continues,” its campaign to bomb on Tuesday.

Throughout the conflict, traders were afraid that Israel would target 3.3 million barrels of crude oil produced by Iran, or that the Islamic Republic may explode by targeting energy infrastructure in the Gulf states, including Iraq.

Investors also watched whether Iran will try to close the Strait of Hormuz, which connects the Persian Gulf and the Gulf of Oman. The strait, used to transport 20 % of crude in the world, is a The main road for Iranian and other Middle East shipmentsIncluding the Kingdom of Saudi Arabia, the largest oil exporter in the world, the United Arab Emirates, Iraq, Kuwait and Bahrain.