Oil Price Drop Brings Temporary Trump Moratorium on Iran Attack

Losses in futures contracts for American markets moderated, as international oil prices decreased following President Trump’s announcement that he would decide within two weeks whether Washington would join Israel in launching attacks against Iran. S&P 500 futures fell by approximately 0.3% compared to a 0.9% drop the previous day. US markets were closed due to a holiday. Trump’s statement provided investors with some short-term clarity but failed to address broader uncertainties regarding potential U.S. involvement and renewed inflation risks from energy costs. Brent crude futures retreated by about 2%, after recording modest gains earlier in the week. U.S. bonds remained steady while the dollar weakened. Analysts noted that recent air strikes pose risks to the energy market landscape, though global energy price impacts appear limited for now. Investor sentiment turned cautious following Bloomberg reports indicating top U.S. officials are preparing for possible strikes on Iran in the coming days. Tensions escalated further after Israel attacked multiple Iranian nuclear sites, with both sides awaiting Trump’s decision on participation. Some extreme scenarios involving increased U.S. involvement could push oil prices to $130-$150 per barrel if Iran retaliates significantly, according to Capital Economics Ltd.