The United States killed Major General Qassem Soleimani, commander of Iran's Islamic Revolution Guards Corps Quds Force, in an airstrike in Baghdad on Friday, escalating tensions in the region.
Following the news, oil prices surged during the previous two sessions with the Brent crude hitting 70 U.S. dollars a barrel.
JBC energy said in a note on Tuesday that markets took a little breather over the course of Monday trading. Risk factors were at least temporarily reassessed, and equity markets recovered while oil gave back some of its gains.
"Given the extent of the rally over the last few weeks this is nothing unusual, and does not negate the fact that even aside from the geopolitical factors, we are in a fundamentally strong market environment," the research institute said.
The West Texas Intermediate for February delivery declined 0.57 dollar to settle at 62.70 dollars a barrel on the New York Mercantile Exchange. Brent crude for March delivery decreased 0.64 dollar to close at 68.27 dollars a barrel on the London ICE Futures Exchange.
Latest comments