Crude oil prices hover near $95/bbl as Trump says talks with Iran underway, COMEX gold up 4%; US stocks close lower

After surging to an intraday high of $100.77 per bbl during Tuesday’s market session, the Brent crude oil prices cooled down after Trump said the the US federal administration is in talks with Iran who allegedly wants to make a deal. Trump also said that Vice President JD Vance and Secretary of State Marco Rubio were involved in the discussions.

The West Texas Intermediate (WTI) crude oil prices also volatile due to the dynamic geopolitical environment in the markets driven by triggers from the West Asia conflict. The prices cooled after hitting a high of $93.33 per bbl during Tuesday’s market session, according to Investing.com data.

Although the global crude oil prices have eased under $95 per bbl at the current level, the tensions over the world energy trade still looms over investors as they navigate the turbulent markets amid the West Asia conflict between the United States and Iran.

Crude oil prices today

As of 7:32 a.m. (IST) on Wendesday, March 25, Brent crude oil prices were trading 5.84% lower at $94.38 per bbl, compared to $100.23 per bbl in the previous market session, according to Investing.com data.

The US-based WTI crude oil prices were trading 5.17% lower at $87.58 as of 7:35 a.m. (IST) in the early market hours on March 25, compared to $92.35 per bbl at the previous commodity market close, according to the data.

Why are oil prices falling today?

Oil prices have fallen across the global market after US President Donald Trump in a White House address on March 24 said that the federal government is in talks with Iran and the West Asian nation allegedly wants to “make a deal so badly.”

On the other hand, the strike between Israel and Iran have been ongoing with Israel confirming strikes on the Iranian capital, Tehran were photos shared by the BBC showed smoke rising over buildings early Wednesday morning.

However, as per a Bloomberg report citing people aware of the development, Trump administration is set to send 2,000 soldiers of the 82nd Airborne Division to West Asia as the White House weighs their options about Iran’s control of the key energy route Strait of Hormuz.

As Trump plans to wind down the operations in Iran, the federal administration is also looking at options in case Iran plans to further impact the trade flow of oil through the Strait of Hormuz.

Gold trades 4% higher

The New York Mercantile Exchange-based COMEX gold prices were trading 4.14% higher at $4,585.80 per ounce as of 10:14 p.m. (EDT) on Wednesday due to the heightened demand for gold amid a fall in the benchmark US dollar rates, compared to $4,402 per ounce at the previous market close.

The Bloomberg US dollar spot index was down 0.18% at 99.257 as of 10:15 p.m. (EDT) on Tuesday, March 24. The gold prices have an inverse relation with the US dollar as investors now will be able to buy more of the precious metal for lesser amount in dollars due to the fall in currency rates.

US stock market snapshot

The benchmark US stocks market indices closed lower after Tuesday's trading session during the rising investors concerns over the inflation rate in the US economy, and the recent reports over Pentagon allegedly preparing to send its troops to West Asia in efforts to gain control over the global energy trade which is impact due to Iran's advances on the region.

The Dow Jones Industrial Average closed 0.18% lower at 26,124.06 points, compared to $46,208.47 points at the previous trading session, according to MarketWatch data. Stocks like Cisco Systems, Caterpillar, Nike, and Walmart were among the gainers, while others like Salesforce, IBM, Microsoft, and Walt Disney were among the losers.

The S&P 500 index closed 0.37% lower at 6,556.37 points, compared to 6,581 points at the previous market close. Company stocks such as Lumentum Holdings, Corning, Hewlett Packard, and Dell were among the gainers, while others like Axon Enterprises, Estee Lauder, and Coinbase Global were among the losers.

The Nasdaq Composite closed 0.84% lower at 21,761.89 points, compared to 21,946.76 points at the previous market close, MarketWatch data showed. Stocks like Robin Energy, Envue Medical, and Quantum BioPharma were among the gainers, while Ridgetech, Linkers Industries, and Jianzhi Education were among the laggards.