Oil Plunges on Trump De-escalation

Note: This section contains information in English only.
Source: Dukascopy Bank SA
Oil prices fell sharply, dropping over 5% as Brent crude dipped to $83.28 and WTI to $79.47 after U.S. President Donald Trump canceled a planned military strike on Iran. The administration cited agreement on the basic parameters of a deal aimed at preventing nuclear escalation and fully reopening the Strait of Hormuz, providing immediate relief to markets after geopolitical tensions drove crude up more than 20% last month.


Adding further downside pressure on energy prices, OPEC+ approved a September output increase of approximately 188,000 barrels per day. The hike completes the cartel's planned rollback of 1.65 million barrels per day in voluntary production cuts originally implemented in 2023, boosting supply just as middle eastern supply risk premiums began to cool.



On the daily chart, the contract rejected hard off its $92.50 peak over the last three weeks, rolling straight back down to test support at $80.00. Failure to hold this handle opens the door for a slide toward $74.50, whereas bulls need a clear push above $92.50 to regain control.

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