Crude Oil Slips as Geopolitical Price Support Fades

Global oil benchmarks have come under renewed selling pressure, retreating from recent highs as the geopolitical risk premium begins to unwind following signs of potential de-escalation.

The bearish shift follows comments from Donald Trump, suggesting that key nations are “seriously talking,” a signal interpreted by traders as a potential de-escalation in US-Iran tensions.

Diplomacy Dampens Supply Fears

Until recently, markets had priced in a significant risk of supply disruption in the Middle East. However, the prospect of diplomatic dialogue has prompted a swift repricing in WTI and Brent Crude.

With the immediate threat to regional supply chains perceived to be diminishing, market focus is likely to shift back to fundamental drivers: global demand forecasts and OPEC+ production policies.

• WTI and Brent benchmarks under selling pressure.
• Fed policies and GDP outlooks impacting global demand.
• US-Iran tensions easing through diplomatic signals.

Technicals

• Traders monitoring potential downside if USD strengthens further.
• Removal of geopolitical floors exposes lower oil support levels.