Oil Prices Fall on Trump’s Comments About Iran Strikes Being Unlikely
U.S. West Texas Intermediate crude settled at $86.85 a barrel after losing $3.98, while Brent fell to $92.57. Prices slid as President Donald Trump played down the prospect of renewed strikes on Iran, even as shipping and regional security concerns remained.
U.S. West Texas Intermediate (WTI) crude settled at $86.85 a barrel on Monday, November 9, down $3.98, as traders weighed U.S. President Donald Trump’s comments that renewed strikes on Iran were unlikely. The WTI price today reflects a market reacting to both hopes for diplomacy and continuing risks to shipping in the region.
Brent crude settled at $92.57 a barrel, down $5.75, or 5.85%. After settlement, Brent fell by more than $7 a barrel to its lowest level since late August. WTI also extended losses in post-settlement trading, falling by more than $5.
Trump said Sunday he was highly unlikely to order fresh attacks on Iran if talks to end the conflict continued. The comments encouraged selling, although reports of shipping being hit in or near the Strait of Hormuz kept concerns about regional security in focus.
“This seems to have encouraged sellers on the prospects for peace even while the actual fighting is not slowing down,” TACenergy analysts said in a note.
Iran’s position remained a barrier to negotiations. A senior Iranian security official told state media that Tehran did not plan to negotiate unless Washington took practical steps to meet seven conditions set out in a June interim agreement.
Shipping volumes through the Strait of Hormuz were also a factor for traders. Iraq reached understandings with the United States to allow Iraqi oil exports through the strait using a shipping lane near Oman, Foreign Minister Fuad Hussein said in a Sunday interview with Al Jazeera.
“Crude futures are under selling pressure once again as oil volumes continue strong through the Strait of Hormuz,” said Dennis Kissler, senior vice president of trading at BOK Financial.
Security incidents continued alongside the market decline. A fire was extinguished after a strike on Saudi Arabia’s East-West pipeline in the Medina region, but the pipeline continued operating and there were no casualties, an energy ministry source said, according to Saudi state media.
The Houthi group claimed responsibility for a Sunday attack on Saudi oil company Aramco’s corporate office in Riyadh. Debris from the attempted attack blew out windows across several floors, the Saudi energy ministry said.
“Fresh tanker incidents and an attack on Saudi Aramco’s offices show that shipping and regional security risks remain unresolved as traders price in a less disruptive outcome,” Gelber & Associates said.
Brent crude fell 16% last week, its steepest weekly drop since the start of the COVID-19 pandemic. The decline came as traders responded to Trump’s comments and signs of continued oil flows through the Strait of Hormuz.
