Oil prices fall after Trump signals end to Israel aid

Oil prices continued to decline while global equity markets fluctuated after US President Donald Trump announced plans to end $4 billion in annual funding to Israel at the end of the year.

Brent crude futures fell 1.5% to $103 a barrel following the announcement.

Trump also said a deal with Tehran “could happen”, while traders pointed to unconfirmed media reports suggesting progress on Iran’s nuclear programme and frozen funds.

“The oil market is acting like, or hoping that, there might be some validity to the reports,” said Patrick O’Hare, an analyst at Briefing.com.

Trump’s announcement on ending annual aid to Israel also contributed to the decline in oil prices.

“A sharp decline in crude oil prices – triggered by remarks from US President Donald Trump regarding potential adjustments to overseas financial support – put heavy pressure on index energy heavyweights,” said Patrick Munnelly of Tickmill.