Oil Prices Fall as Trump Eases Iran Strike Threat
Global crude oil prices declined on Monday, November 9, after US President Donald Trump indicated that further military strikes against Iran were unlikely if diplomatic negotiations continued making progress. The remarks eased concerns over a broader Middle East conflict, although attacks on shipping near the Strait of Hormuz continued to threaten energy supplies.
Brent Crude Falls Below $97 Amid Iran Talks
Brent crude futures declined 1.5% to $96.91 per barrel by 0629 GMT, while US West Texas Intermediate (WTI) fell 1% to $89.85 per barrel.
Brent had already dropped approximately 16% during the previous week, marking its steepest weekly percentage decline since April 2020.
Analysts attributed the latest decline to expectations that Washington and Tehran could move towards de-escalation, reducing the risk of prolonged disruptions to Middle Eastern oil exports.
Trump Signals Reduced Risk of Fresh Iran Strikes
Trump said on Sunday that additional American military strikes against Iran were highly unlikely if negotiations produced a satisfactory agreement.
The president had previously suggested that military operations could resume following the November 3 US midterm elections. However, no new large-scale American offensive had been reported.
Iran has warned that renewed attacks would trigger retaliation against American and Israeli targets.
Strait of Hormuz Attacks Keep Oil Supply Risks High
Despite improving diplomatic expectations, reported attacks on commercial shipping near the Strait of Hormuz continued to raise concerns about regional energy security.
Meanwhile, JPMorgan warned of a potential global oil surplus as Middle Eastern supplies recover and production increases elsewhere.
The bank estimated that global oil supply exceeded consumption by 1.1 million barrels per day in September, widening to 1.4 million barrels per day in October.
Analysts cautioned that crude prices could remain sensitive to geopolitical developments until shipping operations stabilise and a diplomatic agreement emerges.
