Stock quotes for Brent and WTI crude oil declined markedly after reports that US President Donald Trump discussed the possibility of easing sanctions against Tehran.
Mitigation of US sanctions against Iran was discussed as an initial step in resuming negotiations between the US and Iran.
This was reported with reference to unnamed sources on Wednesday, September 11, according to Bloomberg.
President Trump has discussed a similar opportunity with US Secretary of the Treasury Stephen Mnuchin, who supported the proposal to ease the sanctions.
According to agency sources, easing sanctions against Iran could be undertaken with the aim of organizing a meeting between President Trump and Iranian President Hassan Rouhani on the sidelines of the UN General Assembly at the end of September this year.
The news on Wednesday, September 11, became a more serious factor for investors, outweighing the news about a decrease in commercial oil reserves in the United States.
Against the backdrop of reports of a possible easing of US sanctions against Iran, Brent futures for delivery on the Intercontinental Exchange in November fell 2.7% to $ 60.77 per barrel. Futures for WTI crude oil for October delivery on the New York Mercantile Exchange fell 2.8% to $ 55.76 per barrel.
The weakening of US sanctions in the future may lead to an increase in oil supply in the market and, if the negotiations are successful, can generally contribute to the normalization of the situation in the Strait of Hormuz, which sharply worsened in 2019.
The emergence of the proposal, Bloomberg sources noted, provoked the «strong opposition of former National Security Advisor John Bolton.» Thus, the situation around Iran has also been the subject of «numerous disagreements» between Trump and his former national security adviser.
The Vesti.Ekonomika portal noted that the aggressive US foreign policy, which John Bolton was directly involved in, did not lead to any positive results for the Trump administration except for the deterioration of relations with Iran and several other countries of the world.