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U.S. crude settled up $2.89, or 5.4%, at $56.65 a barrel after Iran shot down a U.S. military drone and President Trump said Tehran had made a 'very big mistake.' Brent rose about 4.5% to $64.61 a barrel, and the market also priced in expectations of a Federal Reserve rate cut.
The drone incident raises the risk of direct U.S.-Iran conflict near the Strait of Hormuz, a key chokepoint for oil shipments. Higher crude lifts energy and transport costs across the feed supply chain.
cnbc.comThomas FranckJun 20, 2019After 626 past bullish geopolitics events, Crude Oil (WTI) moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% over 20.
After 656 past bullish geopolitics events, Crude Oil (Brent) moved a median +1.9% over 5 sessions (63% higher; middle half -2.7% to +6.6%), and +0.7% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
