Oil prices fell after Iran's statements on the "low" likelihood of a renewed war

Oil prices declined on Wednesday, Ma. 27, after the Islamic Revolutionary Guard Corps (IRGC) said that the likelihood of a renewed war with the United States is "low," Barron's writes.

"The probability of war is low due to the weakness of the enemy, the armed forces are in ambush with full magazines," said Mohammad Akbarzadeh, deputy chief of political affairs of the IRGC Navy (his statement was originally published by Iran's Tasnim news agency).

Against this background, July futures for the international benchmark Brent crude oil grade fell to an intraday low of $95.79 per barrel, at the time of publication they are losing 2.7% - trading at $96.89 per barrel, while contracts for U.S. West Texas Intermediate (WTI) fell in price by 3.67% - to $90.4. Both benchmark grades have risen in price by more than 55% since the start of this year, but they have lost more than 10% since the beginning of April.

The IRGC statement came a day after Iran accused the U.S. of violating a cease-fire that has been in effect since April. The U.S. on Tuesday night, Ma. 26, struck targets in southern Iran, including gunboats that U.S. commanders said were attempting to lay mines and missile launcher positions. U.S. Central Command later said the strikes were taken in "self-defense."

"Without a doubt, the Islamic Republic of Iran will not leave any act of malice unanswered," the Iranian Foreign Ministry commented on the attack.

Nevertheless, the situation on the oil market indicates that traders hope that the parties will soon reach a peace agreement, writes Barron's.

"Brent crude oil prices remain below $100 a barrel, a good barometer of how the market believes negotiations between Tehran and Washington are progressing. It is hoped that a real breakthrough will finally be achieved this week, but if the talks fail, market patience may run out," remarked AJ Bell investment director Russ Mold.

This article was AI-translated and verified by a human editor