FX.co ★ Brent Halts 5-Day Rally

Brent crude oil futures experienced a 3% drop, settling at approximately $64.50 per barrel on Thursday. This decline halted a five-day upward trend due to a reduction in geopolitical tensions. President Donald Trump indicated a potential delay in US military intervention against Iran, having received assurances that the violent suppression of protesters would cease. This development lessened fears of an imminent conflict that might interfere with Iranian oil production or disrupt crucial shipping lanes. Nevertheless, the situation remains tense, evidenced by Iran's temporary closure of airspace over Tehran and the US's adjustments in deploying personnel at regional military bases. Earlier in the year, oil prices had increased as Iranian unrest and Venezuelan political instability had restored a geopolitical risk premium following a period of price declines attributed to oversupply concerns. Additionally, Trump's comments on renewed diplomatic engagement with Venezuela have introduced further uncertainty regarding future crude oil supplies. On the supply front, US crude inventories recorded their largest weekly increase in months, intensifying the downward pressure on oil prices.