Oil prices edged lower on Tuesday after Trump said new US military action against Iran was not necessary for now, easing concerns about prolonged Middle East supply disruptions. The US said it would maintain its naval blockade in the Strait of Hormuz, and the article noted that attacks on shipping continued without a fresh escalation.
A reduced likelihood of escalation weakens the geopolitical risk premium on crude, while continued shipping attacks and the blockade preserve supply uncertainty. The immediate price bias was lower.
Not enough comparable past events yet for a historical read.
After 255 past bearish geopolitics events, Crude Oil (WTI) moved a median -2.4% over 5 sessions (31% higher; middle half -7.0% to +1.7%), and -5.0% over 20.
After 250 past bearish geopolitics events, Crude Oil (Brent) moved a median -3.1% over 5 sessions (36% higher; middle half -7.9% to +1.6%), and -5.5% 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.