Oil falls as Trump downplays prospect of escalation with Iran

Oil prices extended their decline on Tuesday after US President Donald Trump indicated he would not launch further strikes on Iran for now. The Express Tribune reported Brent was down 70 cents, or 0.75%, at $91.88 a barrel by 0246 GMT, while US West Texas Intermediate fell 78 cents, or 0.90%, to $86.07. Both contracts had dropped 1% earlier in the session, following a 5.85% fall in Brent on Monday.

Trump said he would maintain a naval blockade in the Strait of Hormuz, while attacks on shipping continued without a reported escalation that had added fresh risk pricing. A Reuters survey also found OPEC production increased in October, led by Saudi Arabia, Kuwait and Iraq, despite export restrictions. Brent is about 22% below its October 30 peak of $118, while concerns over shipping disruption remain; an Eurasia Group analyst said a further drop below $90 would require more lasting signs of easing tensions and a US-Iran agreement.