Oil prices fell sharply after reaching a two-month peak, as easing geopolitical tensions and comments from President Trump reduced fears of imminent disruption to Iranian supply, prompting a market pullback, OCBC's FX analysts Sim Moh Siong and Christopher Wong note.

OPEC pause and Venezuela uncertainty keep Brent soft

"Oil prices fell sharply after touching a two‑month high, as easing geopolitical tensions reduced fears of an imminent Iran‑related escalation. Headlines suggest President Trump is stepping back from a potential US strike on Iran, lowering the risk of disruptions to Iranian supply or key shipping lanes."

"We maintain our forecast for Brent outlook to remain subdued but bottom near USD59/bbl by yearend, pending clarity on Venezuela’s new government and resource policy. OPEC’s pause in quota hikes supports soft floor for Brent in highUSD50s."