"Oil" Drops as Trump Reduces Likelihood of Escalation with Iran - Sarmad
Global oil prices fell after Trump's comments downplaying the likelihood of military strikes on Iran, easing fears of supply disruptions.
Translated by Qiyas from سرمد — Original source
Oil prices fell on Tuesday, continuing their losses from the previous day, after U.S. President Donald Trump said that launching a military operation against Iran was not necessary “at this stage,” easing concerns about prolonged disruptions to Middle East supply.
Brent crude futures fell 24 cents, or 0.23 percent, to $92.33 a barrel by 0102 GMT, while U.S. West Texas Intermediate crude futures dropped 35 cents, or 0.40 percent, to $86.50 a barrel.
Later, Brent crude futures fell to $91.56 a barrel, and U.S. crude futures also dropped to $85.79 a barrel.
Brent had previously recorded a 5.85 percent decline at settlement in the prior session after falling to its lowest level since August 31.
Trump said on Monday that he intends to hold back and not launch new military strikes on Iran for the time being, following appeals from countries in the region, including a plea from the prime minister of Qatar during talks at the White House.
In an interview with Reuters and a subsequent appearance in the White House press briefing room, Trump said he intends to continue imposing a naval blockade in the Strait of Hormuz for now.
Tim Waterer, an analyst at KCM Trade, said, “The market continues to prioritize the more conciliatory tone adopted by President Trump toward Iran since the midterm elections.”
He added, “Despite ongoing attacks on ships in the Strait of Hormuz, they have not escalated to the point of imposing new risk premiums on the market.”
Senior officials from the United States and Gulf states expressed skepticism about the likelihood of a near-term peace deal between Washington and Tehran.
Mohsen Rezaei, secretary-general of Iran’s Supreme National Security Council, said the United States should “stop fabricating false news about phantom talks,” adding that “the time has come to comply with the seven conditions repeatedly proposed by Iran.”
On the supply side, a Reuters survey showed that oil production in Organization of the Petroleum Exporting Countries (OPEC) member states rose in October, driven by increased output in Saudi Arabia, Kuwait, and Iraq, despite ongoing export restrictions.
Meanwhile, Russian and Ukrainian officials are scheduled to meet on Tuesday in two-day talks mediated by the United States, the first since February, after Trump said last week that a comprehensive peace agreement is possible in their war, which has now lasted four and a half years.
