Oil Prices Slip as President Trump Indicates No Immediate New Iran Strikes
Crude prices fell after President Trump said further U.S. attacks on Iran are unlikely, despite recent tanker incidents in the Strait of Hormuz and Houthi strikes on Saudi Arabia.
Crude oil prices opened the week lower after President Trump told CNN that new U.S. attacks on Iran are "highly unlikely" to be necessary. The market reaction came amid fresh reports of tanker attacks in the Strait of Hormuz and renewed Houthi strikes on Saudi targets.
At the time of writing, Brent crude was trading around $98.28 per barrel and West Texas Intermediate near $91.24 per barrel, both down from the previous Monday’s levels.
"It depends on whether or not they sign a very strong agreement," Trump said. "The answer is, highly unlikely it's going to be necessary."
Analysts noted that the president’s comments suggest a de-escalation, though they cautioned that the market remains sensitive to political developments. KCM Trade’s chief analyst Tim Waterer said the market is waiting to see whether the recent U.S. midterm elections will produce a lasting shift in Trump’s approach to the conflict.
Saxo Bank’s Ole Hansen observed that hopes for an end to the conflict, combined with improving Middle East crude flows, could gradually unwind the supply disruptions that have kept energy prices elevated this year. He referenced a recent 13% drop in both Brent and WTI prices following the Democrats’ midterm victory.
Despite the softer price outlook, reports from Iran’s Islamic Revolutionary Guard Corps indicated that three tankers were on fire in the Strait of Hormuz on Sunday, underscoring that the risk of further disruptions remains.
The outlook for oil prices will depend on whether further policy signals from the White House or developments in the region shift market expectations.