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Oil falls as Trump says new Iran attacks 'unlikely'
Reuters • • nation
Key Points:
- Oil prices dropped at Monday's open following US President Donald Trump's statement that new attacks on Iran are highly unlikely as talks to end the conflict progress, despite recent reports of attacks near the Strait of Hormuz.
- Brent crude fell 0.85% to $97.48 per barrel, and West Texas Intermediate decreased 0.35% to $90.51 per barrel, reversing minor gains from the previous Friday.
- Trump indicated that any military action depends on the strength of a potential agreement with Iran, signaling a more measured approach compared to earlier hints of renewed attacks after the US midterm elections.
- JPMorgan reported a growing global oil surplus due to recovering Middle Eastern flows, increased production, and weak demand, with a surplus estimated at 1.4 million barrels per day in October.
- Iraq and the US agreed to allow Iraqi oil exports through a shipping lane near Oman in the Strait of Hormuz, while Houthis claimed responsibility for a recent attack on Saudi Aramco's Riyadh offices causing property damage but no casualties.
