Oil prices slipped after three straight days of gains, as investors grew more cautious across global markets and the US dollar strengthened.
Brent crude fell back below $70 a barrel after crossing that level in the previous session for the first time since July. US crude, West Texas Intermediate, also moved lower, trading around $64 a barrel.
The drop in oil came alongside declines in Asian stock markets and a broad sell-off in metals, from gold to copper. At the same time, the US dollar index climbed, which often puts pressure on commodity prices.
Even with this pullback, Brent crude is still heading toward its strongest monthly gain since July 2023. Prices have been supported by rising geopolitical tensions involving Iran, especially after US President Donald Trump shifted his stance from sanctions to pushing for a new nuclear deal — while still keeping pressure high.
Some forecasts point to possible downside risks due to higher global supply, but Citigroup said geopolitical concerns are keeping a risk premium in the market. The bank expects that premium on Brent crude to stay between $7 and $10 per barrel.
Worries in the market have grown after Trump warned of possible military action and as the US increased its naval presence in the Middle East. These moves have raised fears about shipping safety through key oil and gas routes that are critical to global energy supplies.
