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Good morning and welcome back to the City AM liveblog.
The price of oil is moving lower this morning after President Donald Trump abandoned plans to renew strike action on Iran.
Trump said he called off the plans at the request of Gulf leaders, who informed him that a deal is set to be made that is “very acceptable” to the US. The President added there would be: “NO NUCLEAR WEAPONS FOR IRAN!”
Though Trump the US would be ready to “go forward with a full, large scale assault of Iran, on a moment’s notice” if there was no acceptable deal.
Oil has since dropped following the news with Brent crude – the international benchmark for oil prices dropping 1.7 per cent this morning to around the $90 mark.
The drop in prices comes after Fathi Birol, head of the International Energy Agency, warned on Monday that commercial oil inventories were drying up rapidly with just a few weeks of capacity left as a result of the war in the Middle East.
Birol, who is joining G7 finance leaders meeting in Paris, said that the release of strategic oil reserves had contributed an extra 2.5m barrels of oil per day to the market, but added these reserves “are not endless”.
Whilst he said there was a major surplus in oil markets when the war began, Birol said the situation was rapidly shifting and remaining commercial inventories would last “several weeks, but we should be aware of the fact that it is declining rapidly”.
We’ll be bringing you the latest on this and more.
Here’s a few of our top stories this morning
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