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Oil Declines as Iran Tensions Ease and Trump Menaces Greenland - BLOOMBERG
(Bloomberg) — Oil fell as tensions over Iran cooled and wider markets had a risk-off tone with President Donald Trump’s push to take Greenland.
Brent (BZ=F) fell below $64 a barrel, while West Texas Intermediate (CL=F) was near $59. While there wasn’t a ratcheting up of risks Iran over the weekend, Supreme Leader Ayatollah Khamenei said several thousand people died in this month’s anti-government demonstrations. Earlier, traders had been worried about potential disruptions to supplies from the OPEC member.
Meanwhile, concerns over Trump’s latest gambit on Greenland, including a threat to impose of tariffs on some European nations, hurt sentiment. Treasury Secretary Scott Bessent told NBC that direct US control of the territory would boost deterrence. In wider markets, stocks fell, while gold hit a record.
Crude has been under pressure in recent quarters on concern supply is outpacing demand, with market watchers like the International Energy Agency forecasting a major overhang of 3.8 million barrels a day this year. Even so, pockets of tightness remain, including a shortage in shipments from Kazakhstan driven by issues in the Black Sea. Brent timespreads have strengthened.
“Brent remains caught in a complex dance,” said Robert Rennie, head of commodity and carbon research at Westpac Banking Corp. On the one hand, there are geopolitical risks, but on the other, increasing output and inventories, he said.
A sharp deterioration on the ground in Iran would risk pushing prices above $70, although the near-term focus has switched to Greenland from Tehran, which has been exerting bearish pressure on prices, Rennie added.
At least one US aircraft carrier had been moving to the Middle East, as of Friday, according to Fox News, citing military sources. Trump — who indicated last week that he would hold off on attacking Iran — is due to address the World Economic Forum in Davos, Switzerland, later this week.
Also in the coming days, the Paris-based IEA is due to issue its first monthly market snapshot of 2026 on Wednesday, having consistently flagged prospects for a glut this year after supply hikes from OPEC+, as well as drillers outside the alliance.
On Monday, volumes may be lower than usual due to a holiday in the US.
