Trump predicts Iran conflict will end after U.S. midterms, foresees oil price drop
President Donald Trump said the war involving Iran is likely to conclude shortly after the November midterm elections, which he expects will trigger a sharp decline in oil prices.
President Donald Trump told reporters in Ireland that he expects the conflict involving Iran to end soon after the U.S. midterm elections, adding that oil prices would "tumble down" once the fighting stops.
Oil markets responded to diplomatic signals on Friday, with Brent crude futures falling 2.8% to $104.61 a barrel and U.S. West Texas Intermediate dropping 2.4% to $100.05, after having peaked above $108 and $104 respectively earlier in the week.
Iranian state media reported that Tehran will meet Gulf states in Muscat, Oman, to discuss a shipping route through the Strait of Hormuz, suggesting a diplomatic opening despite recent escalations. A senior government official and a Gulf diplomat were quoted as saying the meeting aims to sign an agreement establishing an Iran-Oman corridor.
Iranian President Masoud Pezeshkian, speaking in New Delhi, said Iran will not surrender and has resisted aggression from the United States and Israel.
Separately, Trump said Iran is likely behind recent attacks on Saudi Arabia’s east-west crude pipeline, which Saudi officials shut down after drone strikes from Iraq caused fires and injuries. The president said he spoke with Crown Prince Mohammed bin Salman following the incident.
Trump also noted that Yemen’s Houthi rebels, backed by Iran, have contacted his administration and expressed a desire not to fight the United States. The Houthis have recently advanced on Perim Island in the Bab el-Mandeb Strait, a move that Saudi officials view as a significant setback and have prompted calls for U.S. military action.