West Texas Intermediate (WTI) crude oil prices fell to around $89.65 during early European trading hours on Friday, according to FX Street. This decline followed US President Donald Trump’s statement that Washington would not launch attacks on Iran before the November midterm elections.
Trump’s assurance appears to have eased geopolitical concerns that had been supporting oil prices, leading to a notable pullback in the commodity market. The US president’s comments underscored a cautious approach ahead of the politically sensitive midterms, reducing the risk premium priced into crude.
For Japanese investors, this development is significant given Japan’s reliance on stable energy imports and the impact of oil price fluctuations on the domestic market and FX pairs linked to commodities.