Oil slides as Trump signals restraint on Iran despite fresh shipping attacks

Oil prices dropped on Monday after US President Donald Trump said fresh strikes on Iran were unlikely while talks continued, Business Recorder reported. By 1219 GMT, Brent was down $3.49, or 3.6%, at $94.83 a barrel, while West Texas Intermediate fell $2.66, or 2.9%, to $88.17. Attacks on shipping near the Strait of Hormuz nevertheless kept supply risks in view.

Brent had lost 16% last week, reaching $93.22, its lowest level in two months and its steepest weekly decline since the start of the COVID-19 pandemic. Market analysts cited expectations of a US-Iran agreement, weakness in physical trading and continuing Middle East oil flows as factors weighing on prices. JPMorgan estimated that supply exceeded demand by 1.1 million barrels per day in September, with the surplus growing to 1.4 million in October; meanwhile, the Houthis claimed an attack on Saudi Aramco offices in Riyadh, and a Ukrainian drone strike set Russia’s Kirishi refinery ablaze.