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Oil fell nearly 5% after President Trump said Iran was standing down and that the U.S. would impose sanctions instead of another military strike. WTI dropped to $59.61, its first close below $60 since Dec.
16. Iran's missile attack had failed to hit major energy infrastructure.
Removal of the threat of military escalation drains the risk premium from crude prices. Sanctions keep some tension alive but do not restore the earlier supply fears.
cnbc.comThomas Franck, Sam Meredith, Pippa StevensJan 7, 2020After 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.
