Oil prices fell to their lowest level in three weeks on Friday after President Trump canceled a planned military strike on Iran. The drop erased the risk premium that had been built into crude futures amid expectations of a potential conflict.
The canceled strike
President Trump canceled a planned military strike on Iran. The decision removed a key source of geopolitical uncertainty from the market.
Market reaction
Benchmark crude prices dropped more than 2% on the day, hitting a three-week low. The decline was driven by the removal of the threat of immediate military action, which had been supporting prices. Energy stocks also fell as investors adjusted their outlook.
The move comes after a period of heightened volatility in oil markets. Traders are now watching for any further developments that could affect supply.
