Brent Falls Below $90 for the First Time Since August on Iran Remarks
Brent is about 22% below its Oct. 30 high of $118. Oil feeds inflation, and U.S. consumer price data lands at 8:30 a.m. ET today.
Brent crude fell below $90 a barrel on Tuesday for the first time since August, after President Donald Trump said further U.S. strikes on Iran were not needed for now. The global benchmark was down 2.65% at $90.14 at 5:33 a.m. ET, CNBC reported, after January contracts dipped under $90 earlier.
The Financial Times put the day's low at $89.21, down as much as 3.6%. U.S. WTI crude was near $84.78, down 2.4%, per CNBC.
Two days, two drops
Brent settled down 5.85% on Monday, Reuters reported, and it is now about 22% below the six-month high of $118 it reached on Oct. 30. Trump said on Monday he would hold off on new strikes after appeals from countries in the region, including Qatar's prime minister, while keeping a naval blockade in the Strait of Hormuz for now. Reuters also said attacks on shipping in the strait are still taking place.
Not everyone expects a quick slide. "Prices are unlikely to fall below $90 per barrel for Brent without more durable signs of de-escalation and a US-Iran deal," Gregory Brew of Eurasia Group said in a note cited by Reuters.
Why oil reaches crypto
Fuel costs feed straight into consumer prices. When oil climbs, inflation tends to run hotter, which pushes rate expectations up and makes assets that pay no interest, like bitcoin, less attractive to hold. Cheaper oil works the other way. That link matters today because October U.S. inflation data comes out at 8:30 a.m. ET.
Bitcoin was near $74,160 at 5:59 a.m. ET, up 0.1% in 24 hours, per CoinGecko.
Sources: CNBC · Financial Times · Reuters via Business Standard · The Guardian · Bloomberg via Moneycontrol · CoinGecko, bitcoin price
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