Crude Oil Pulling Back Sharply After Seeing Early Strength

Crude for April delivery is slumping $0.71 or 1.1 percent to $66.31 a barrel after jumping as much as $0.84 or 1.3 percent to a high of $67.15 a barrel.

The pullback by the price of crude oil comes as traders look ahead to a third round of nuclear talks between the U.S. and Iran on Thursday in Geneva.

The U.S. is shifting immense military assets into West Asia, sending a warning of its offensive intent to Iran.

After U.S. President Trump stated that he was considering a limited attack on Iran, Iran has clearly stated that even a small attack would not be tolerated and it will take strong action in response.

It is feared that any military action or retaliatory moves in the region could pose threats to shipping through the Strait of Hormuz and tighten supply.

Recent partial closures of the strait during Iranian military drills have underscored ongoing risk to transit routes.

Meanwhile, traders are evaluating the potential turbulence in the trade tariff environment following the U.S. Supreme Court’s ruling on reciprocal tariffs.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.