US President Donald Trump stated that reaching a peace agreement with Iran may only be a matter of time. In his opinion, the agreement may even be more beneficial than a military victory.
Trump expressed confidence in the possibility of reaching an agreement with Tehran within the next week, ABC News reports. Responding to questions about the potential to reach an agreement to unblock the Strait of Hormuz, the president noted that “it’s a significant matter,” and also emphasized the complexities that may arise in the negotiations. According to the president, it may be a challenging task for both sides, but a peace agreement may have greater value compared to a military solution.
Tensions related to the conflict between the United States and Iran have also impacted oil markets. Reuters reports that oil prices fell by more than 1% on Tuesday, offsetting sharp gains from the previous session. The price of Brent crude oil futures dropped by $1.52 or 1.6% to $93.46 per barrel, while U.S. WTI crude lost $1.43 or 1.6% and was trading at $90.73 per barrel.
UBS analyst Giovanni Staunovo commented that Trump’s social media statements, indicating a possible de-escalation of the conflict, are putting pressure on oil prices. However, oil supplies through the strait remain limited. Price changes were also influenced by the announcement from the Iranian agency Tasnim regarding the suspension of negotiations with the Trump administration, which previously led to a significant spike in oil prices.
