Oil prices fall to lowest since August as Trump says Iran war is ‘effectively over’

Oil prices fell to their lowest level since late August and European shares rose after Donald Trump said the war with Iran was “effectively over” and suggested further military action was not currently necessary. The market reaction reflected hopes that easing tensions could reduce energy costs, although economic and corporate risks remain.

Brent crude dropped nearly 3% to $89.66 a barrel on Tuesday, following a fall of almost 6% on Monday. The Stoxx 600 rose 0.9% and London’s FTSE 100 gained 0.4%; airlines advanced while BP and Shell fell. The AA said UK petrol averaged 169.7p a litre, down 5p since early October, with wholesale prices suggesting a further 10p reduction could follow.