Oil prices fell more than 1% Wednesday after President Donald Trump signaled he might not attack Iran.
U.S. crude oil fell 95 cents, or 1.55%, to $60.20 per barrel by 4:17 p.m. ET. Global benchmark Brent was down 93 cents, or 1.42%, to $64.54.
Trump told reporters in the Oval Office that “we’ve been told that the killing in Iran is stopping. It’s stopped. It’s stopping and there’s no plan for executions.”
The president had previously threatened to take “very strong action” against the Islamic Republic if it executes protestors.
Oil prices had closed more than 1% higher Wednesday, but suddenly swung lower in extended trading as the market interpreted Trump’s remarks as a sign that strikes might not be imminent.
Trump said the U.S. is monitoring the situation in Iran when asked directly whether military action is off the table.
“We’re going to watch it and see what the process is,” the president said. “But we were given a very good statement by people that are aware of what’s going on. Everybody’s talking about a lot of executions were taking place today. We were just told no executions. I hope that’s true. That’s a big thing.”
Iranian security forces have launched a crackdown against large-scale demonstrations with hundreds of people reportedly dead. The government has cut off Internet access making it difficult for the outside world to verify how the situation on the ground is developing.
Iran is an OPEC member and a signficiant crude oil producer. Traders are watching to see if the social unrest in the Islamic Republic disrupts oil supplies.
