Brent crude dips below $90 as Trump signals no immediate Iran strike

Brent crude futures slipped to $89.70 per barrel in early European trading on Tuesday, marking the first time the benchmark has been under $90 since August. The decline coincided with remarks from President Donald Trump that the United States does not plan further strikes against Iran at this point.

The price drop was mirrored in the U.S. benchmark, WTI crude, which traded below $85 per barrel, a fall of more than 2%. In Asian markets, Brent briefly traded under $92 per barrel following the same reports.

Saudi officials said a recent Houthi attack on the East-West pipeline caused a limited fire that was quickly extinguished. Market participants said attention is now on diplomatic efforts mediated by Qatar that could lead to a broader agreement in the region.

Ole Hansen, head of commodity strategy at Saxo Bank, noted that Brent has fallen about 25% from its late-October peak of above $117 per barrel and that the recent U.S. midterm elections have boosted expectations for a de-escalation of the eight-month conflict.

"President Trump added to the optimism by suggesting further strikes on Iran would not be necessary. While crude oil flows have almost returned to pre-war levels, LNG and refined product supplies remain constrained, keeping prices elevated, particularly for diesel," Hansen said.

Analysts said the market will continue to react to any new signals from Washington or Tehran regarding a possible diplomatic breakthrough.