Oil prices fell after U.S. President Donald Trump again postponed a deadline for striking Iran’s energy infrastructure, Bloomberg reported.
Brent crude fell 2%, falling below $106 a barrel after rising nearly 6% the previous day. WTI crude fell 1.2%, to around $93 a barrel.
“Trump’s actions are somewhat easing short-term market pressure, but risks remain tilted to the upside,“ said Eva Mantey, commodities strategist at ING Groep NV.
According to analysts at Macquarie Group Ltd. the probability of the war ending by the end of March is approximately 60%, while the probability of a longer conflict, possibly until June, is 40%. The latter scenario could lead to oil prices rising to $200 a barrel.
Brent crude oil futures have risen by nearly 47% since the beginning of March.