WTI plummets below $56 on reports suggesting US Pres. Trump offered to ease sanctions on Iran

Citing three people with knowledge of the matter, Bloomberg today reported that President Trump earlier this week, on Monday, discussed easing sanctions on Iran with an aim to secure a meeting with Iranian President Rouhani, which caused National Security Adviser Bolton to argue against it and eventually resign.

The report further noted that Treasury Secretary Mnuchin supported the idea as a step toward restarting negotiations with Iran.

With the initial market reaction, crude oil prices came under heavy selling pressure and the barrel of West Texas Intermediate dropped all the way to $55.85 before staging a modest recovery. As of writing, the barrel of WTI was down 2.65% on the day at $56.30.