West Texas Intermediate (WTI) fell as low as $101.69 on Sunday night after President Donald Trump ruled out an immediate Iran strike. The dip leaves US oil above $100 and about 53% higher than before the US-Israeli war began.
Brent, the global benchmark, still sits near $116, according to Trading Economics. However, Goldman Sachs estimates nearly $25 of that price is a war risk premium, even as Gulf exports recover.
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Is a Trump Pause Enough to Cool Oil？
Trump said Sunday that no strike would happen that day. He also suggested Washington might still complete its military campaign or strike a deal, Al Jazeera reported.
Qatari mediators visited Tehran, and President Masoud Pezeshkian said Iran should still pursue a peace deal.
In contrast, Irans parliament speaker said Washington miscalculated in launching the war and must find a way out.
Meanwhile, the Saudi-led coalition said it destroyed missiles and drones that Yemens Houthi group fired at the kingdom.
Shiptracker Kpler counted at least 18 reported vessel attacks over two weeks, according to an Oct. 19 note.
BREAKING:
Oil crashed -1.7% on the news that President Trump cancelled today's strikes on Iran.
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Separately, Washington and Israel have reportedly drafted Iran strike plans for after the Nov. 3 US midterm elections.
Can Oil Above $100 Survive a Diplomatic Thaw？
WTI settled at $67.02 on Feb. 27, a day before the war began. Goldman forecasts Brent at $90 in December, with escalation the main upside risk.
With Brent about $13.50 above WTI, a $90 Brent would therefore imply WTI in the mid-$70s.
Dutch bank ING said the premium would erode slowly if flows continue uninhibited, and saw no sign yet.
Higher crude feeds fuel bills and inflation. US consumer prices rose 3.7% in the year to September.
That matters for stocks and crypto, since stickier inflation can keep interest rates high and weigh on risk assets.
Oil above $100 therefore hinges on whether Qatari mediation delivers before another attack on Gulf shipping or Saudi sites.