A Reuters report yesterday suggested a US attack on Iran was imminent, pushing oil to its highest level since October.
“Iranian Patriots, KEEP PROTESTING, TAKE OVER YOUR INSTITUTIONS!!! HELP IS ON ITS WAY,” Trump posted on Truth Social.
Today, that risk premium is fading as no military action has materialised. WTI is down, erasing two of the last four days of rallies.
The outlook can shift to the upside again quickly if tensions escalate, but traders should weigh the geopolitical risk against the reality of an oversupplied oil market.
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