Trump’s pledge not to strike Iran before midterms fails to soothe oil markets

President Donald Trump’s surprise pledge that the United States would not resume airstrikes against Iran before the midterm elections failed to reverse a sharp jump in oil prices Thursday.

“We will not be attacking Iran at any time prior to the Midterm Elections to be held in the United States on November 3rd,” Trump wrote on his social media site, adding that the U.S. was having “productive discussions with the Islamic Republic of Iran.”

Trump’s statements have been a significant driver of daily moves in the oil market since the start of the war with Iran in February. But Thursday, after a brief price dip, oil markets largely shrugged off his announcement.

After having risen as high as almost $106 per barrel, Brent crude oil closed at $104.28, a rise of 4%. U.S. crude oil also ended the trading session up 3.6%, at $91.49, after having jumped to nearly $93.

Other critical energy prices also looked past Trump’s post. Benchmark diesel futures spiked 6% in European trading. Heating oil, a proxy for jet fuel, rose more than 5%.

In addition to the elevated Iran risk, oil prices Thursday reflected traders’ concerns about reports of Iranian proxy attacks in Saudi Arabia.

Original source: https://www.nbcnews.com/business