Oil falls as Trump downplays prospect of escalation with Iran

Crude benchmarks moved down early Tuesday after US President Donald Trump indicated that further American strikes on Iran were not needed for now. Business Recorder reported Brent at $92.33 a barrel, down 24 cents or 0.23%, and US West Texas Intermediate at $86.50, lower by 35 cents or 0.40%, at 0102 GMT. Brent had already dropped 5.85% in the prior session, reaching its weakest level since August 31.

Trump said he would maintain a naval blockade in the Strait of Hormuz, while officials from the United States and Gulf states questioned whether a near-term agreement with Tehran was likely. Although shipping attacks continue, an analyst quoted by Reuters said they had not intensified enough to bring a new risk premium into oil markets. A Reuters survey also found that OPEC production increased in October, with higher output from Saudi Arabia, Kuwait and Iraq despite export limits. Changes in crude prices are relevant to Pakistani investors tracking listed oil and gas exploration and marketing businesses.