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Oil prices fell sharply following U.S. President Donald Trump's remarks suggesting a potential end to the conflict with Iran, easing concerns over supply disruptions. Trump stated that a deal to resolve tensions was 'very close,' which reduced market anxieties. Brent crude dropped below $60 per barrel, while West Texas Intermediate (WTI) fell to $55. The U.S. Energy Information Administration also reported a larger-than-expected rise in crude oil inventories, adding to the bearish sentiment. The decline in oil prices impacts global markets, particularly energy-dependent economies. Traders are reassessing risk premiums tied to geopolitical tensions in the Persian Gulf, which had previously driven prices higher. A resolution in U.S.-Iran relations could stabilize supply chains and reduce volatility, but investors remain cautious about OPEC+ production cuts and U.S. shale output growth. For MENA investors, lower oil prices may pressure government revenues and sovereign wealth funds. Key watchpoints include OPEC+ meetings in December and U.S. sanctions on Iranian oil. Traders should monitor Iran's actual compliance with any deal and the pace of U.S. shale production recovery.
