Oil slides as Trump signals restraint on Iran despite fresh shipping attacks
Global oil prices slumped as United States President Donald Trump signaled that ordering fresh strikes on Iran is unlikely while conflict resolution talks make progress. Brent crude futures dropped below $98 a barrel, while West Texas Intermediate fell past $90 a barrel. The market downturn extended steeper losses from the prior week despite ongoing reports of attacks on commercial shipping vessels in or near the Strait of Hormuz. Traders also reacted to media reports concerning potential new negotiations to restart diplomatic discussions between Washington and Tehran.
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- ✓ Brent crude was down 84 cents, or 0.85%, to $97.48 a barrel at Monday's open, while West Texas Intermediate fell 32 cents, or 0.35%, to $90.51 a barrel.
- ✓ Brent crude futures continued tumbling after settlement on Monday to lose more than $7 a barrel, hitting their lowest since late August.
- ✓ United States President Donald Trump stated he was highly unlikely to order new Iran attacks while talks to end the conflict make progress.
What changed
Crude prices tumbled as United States President Donald Trump downplayed the prospect of renewed military strikes against Iran despite ongoing shipping attacks.
Live updates
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Oil Slips as Trump Hints at Iran Restraint Amid Shipping Attacks
Global oil prices slumped as United States President Donald Trump signaled that ordering fresh strikes on Iran is unlikely while conflict resolution talks make progress. Brent crude futures dropped below $98 a barrel, while West Texas Intermediate fell past $90 a barrel. The market downturn extended steeper losses from the prior week despite ongoing reports of attacks on commercial shipping vessels in or near the Strait of Hormuz. Traders also reacted to media reports concerning potential new negotiations to restart diplomatic discussions between Washington and Tehran.
Why it matters
Crude prices fell sharply following comments from United States President Donald Trump indicating restraint against Iran, even as regional maritime attacks kept supply disruption fears alive. JPMorgan noted that recovering Middle Eastern oil flows alongside rising production elsewhere and weak demand have pushed global supply above consumption, threatening an impending glut. The market remains highly sensitive to diplomatic talks between the United States and Iran as well as maritime transit security in key Middle Eastern choke points.
What is confirmed
- Brent crude was down 84 cents, or 0.85%, to $97.48 a barrel at Monday's open, while West Texas Intermediate fell 32 cents, or 0.35%, to $90.51 a barrel.
- Brent crude futures continued tumbling after settlement on Monday to lose more than $7 a barrel, hitting their lowest since late August.
- United States President Donald Trump stated he was highly unlikely to order new Iran attacks while talks to end the conflict make progress.
Still unconfirmed
- Iran reportedly eased its demands regarding the Strait of Hormuz.
What to watch next
- Progress or breakdown in US-Iran diplomatic negotiations
- Official confirmation regarding attacks on oil infrastructure or shipping routes in the Strait of Hormuz
- Further updates on global oil supply levels and consumption demand from JPMorgan or other major financial institutions
confidence 90%Sources used for this update (20)
- finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
- consent.yahoo.com — Latest news and current events updates | Yahoo News Singapore
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- www.khaleejtimes.com — Khaleej Times - Dubai News, UAE News, Gulf, News, Latest news,...
- www.cnbc.com — Oil today: Iran, US, crude, wti, brent, trump
- tribune.com.pk — Houthis say they attacked East-West oil pumping stations; no Saudi confirmation
- www.timesnownews.com — 'A Sense Of Pride': Novak Djokovic Hails Students After Mass Movement Topples Serbian Government
- Reuters — Oil falls on open as Trump says fresh Iran attacks 'unlikely'
- FOREX.com — Crude Oil Weekly Outlook: Houthi Attacks vs. a Double Top?
- www.cnbc.com — Oil falls as Trump says new Iran attacks 'unlikely'
- Bloomberg.com — Oil Falls on Unconfirmed Report That Iran Eased Hormuz Demands
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