Oil plummets as Trump signals thaw in Iranian sanctions deadlock

Oil dropped to a one-week low as U.S. President Donald Trump considered easing sanctions on Iran that severely restricted the OPEC member’s ability to export crude.

Futures declined more than 2% in New York and London on Wednesday. Trump is preparing to meet with Iranian President Hassan Rouhani later this month, according to people familiar with the matter. Such talks would be unprecedented for an administration that made isolating the Islamic Republic a cornerstone policy.

Friction within the White House roiled oil markets for a second straight day as foreign-policy clashes boiled over into public view and the president signaled a possible rapprochement with Iran.

“The crude market will be very sensitive to any changes to the U.S.-Iran relationship,” said Brian Kessens, a portfolio manager at Kansas-based Tortoise. “If the relationship improves, there will be more Iranian crude for the market