Economics

Oil Plummets as Trump Signals Thaw in Iranian Sanctions Deadlock

Trump is preparing for meeting with Iranian leader, people say
Full resumption of Iran exports could pressure U.S. explorers

Oil tankers are anchored near the Port of Long Beach, California, U.S., on Thursday, Dec. 31, 2009. A surplus of idled oil tankers, which would stretch 26 miles if lined up end to end, may signal a 25 percent slump in freight rates this year. The ships will unload 26 percent of the crude and oil products they are storing in six months, adding to vessel supply and pushing rates for supertankers down to an average of $30,000 a day, compared with $40,212 now.Photographer: Bloomberg/Bloomberg

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By Sheela Tobben

September 10, 2019 at 10:52 PM UTC

Updated on

September 11, 2019 at 7:34 PM UTC

This article is for subscribers only.

Oil dropped to a one-week low as U.S. President Donald Trump considered easing sanctions on Iran that severely restricted the OPEC member’s ability to export crude.

Futures declined more than 2% in New York and London on Wednesday. Trump is preparing to meet with Iranian President Hassan Rouhani later this month, according to people familiar with the matter. Such talks would be unprecedented for an administration that made isolating the Islamic Republic a cornerstone policy.