Danske Research Team reports that Brent Crude slipped about 2% to USD 109.8 per barrel after President Trump paused a large-scale strike on Iran to allow negotiations. They add that a US sanctions waiver on Russian seaborne crude and record US reserve draws have left Oil markets highly sensitive to any renewed escalation in the Iran conflict.

Brent reacts to war and waivers

"In the US-Iran war, Tehran has submitted a new response to the latest US proposal via Pakistan, though mediators warn the ceasefire is "on life support"."

"Brent Crude slipped around 2% to USD109.8/bbl in early Asian trading after President Trump said he had paused a planned large‑scale strike on Iran to allow time for negotiations aimed at ending the war in the Middle East."

"Yet Trump insists the US remains ready to act if talks fail."

"At the same time, Washington extended a sanctions waiver on Russian seaborne crude, helping stabilise physical supply, while record US reserve draws have pushed inventories to two‑year lows, leaving the market highly sensitive to any renewed escalation."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)