The prices of oil saw a drop after the President of Donald Trump had made emphasis on de-escalating the conflict that is going on with Iran as he made an address to the nation on Wednesday.
He said that Iran is appearing to stand down, which is something that is good for everyone and the world as a whole.
The Brent crude oil international benchmark had been low by as much as 4% to reach the level of $65.55 per barrel after it had reached $71.99 in the trading overnight.
Iran had attacked the airbases of Iraq where the troops from the United States had been stationed. This followed the threat of revenge from Iran after the attacks from the United States which had killed their military leader Qassem Soleimani who had been blamed the slaying of the troops in Iraq. Some analysts have said that the move may be an attempt to save the face of Iran as the tensions escalated because there have been no casualties in the attacks.
The periods in the past have caused the oil in the Middle East to increase as the investors have been venturing in the possibilities that the nation is going to close the Strait of Hormuz which is the most critical choke point in the world when it comes to oil as it is seeing close to 21% of the supply globally.
At that time, the United States however had been a net importer of the oil. It is among the largest producer of oil producing close to 12.7mbpd till the month of November as per the data. However, in comparison it had been producing less than half of it when 2010 ended.