Easing of the Iran situation hopes to help sustain the downward trend in oil prices; market focuses on Trump's speech

Investing.com- During Thursday’s Asian trading session, oil prices continued their decline. Signs of easing geopolitical tensions and bearish U.S. inventory data weighed on market sentiment, as investors waited for a key speech by U.S. President Donald Trump on the Iran conflict.

As of 20:25 Eastern Time (00:25 Beijing Time), June Brent crude futures were down 1.2% to $99.92 per barrel, while West Texas Intermediate (WTI) crude futures fell 1.7% to $98.40 per barrel.

The two major benchmark crude oils closed slightly lower on the previous trading day, as traders booked risk premia tied to disruptions in Middle East supply.

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On Tuesday, Trump told reporters that the U.S. could leave Iran in “two to three weeks,” even without a formal agreement. The remarks sparked market expectations that the conflict could de-escalate, prompting the market to price in some geopolitical risk that had pushed oil prices to multi-month highs in March.

The White House said Trump will deliver a nationwide televised address at 9:00 p.m. Eastern Time (01:00 Greenwich Mean Time).

Conflicting signals from ceasefire talks also intensified market volatility. In a social media post, Trump said that Iran’s “new regime president” has requested a ceasefire, implying that a window for negotiations may be opening. However, Iran’s foreign ministry denied the claim, and official media reported on Wednesday that Tehran was not seeking a ceasefire.

On the supply side, U.S. government data added further downward pressure. A report from the U.S. Energy Information Administration (EIA) said that for the week ending March 27, crude inventories rose by about 5.5 million barrels, exceeding expectations for a modest increase.

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