Oil falls below $62 on hopes that Iran-US tensions have peaked
Oil is down $1.06 to $61.66.
WTI crude oil spiked to the highest since April at $65.65 as the bombs were falling on the US bases in Iran. At that point, it looked likely that a war was breaking out.
Later officials in Iran said there would be no further attacks if the US didn't respond. Trump also said 'all is well' in a tweet that highlighted there were no US causalities. Later, a report citing a US military official said Iran appeared to be 'shooting to miss'.
So why are we lower now? In short, this looks like it could be the end of hostilities. A day ago, we were still waiting for the response, now there is a path towards total de-escalation.
In light of that, the geopolitical premium in oil that arose on the assassination of Qasem Soleimani. Oil was at $61.18 before news of his death broke and that's almost exactly where we are today.
