NEWS

(Bloomberg) – Oil prices will continue to fluctuate wildly until it’s clear whether Iran and President Donald Trump will strike an agreement to end the war, according to Citigroup Inc.’s global head of commodities research.

“It’s very difficult to predict” if Iran is going to do a deal, Citigroup’s Max Layton said Thursday. “In that environment where you basically don’t know if there’s going to be a deal or not—very difficult to predict with this new leadership in Iran—you know you’re going to be subject to news and you’re going to be moving around like crazy.”

Oil trading this week underscored Layton’s point. Brent has climbed as high as $115.30 a barrel and tumbled to about $96 as traders vacillated between the prospects for peace or renewed hostilities. Crude fell Thursday for a third consecutive day, with both Brent and WTI below $100 amid new diplomatic efforts to end the war and reopen the vital Strait of Hormuz.

The move lower is on some “hope that we’ll talk about a deal,” Layton said.

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