Oil falls as Trump signals restraint on Iran amid fresh Hormuz shipping attacks
USO•Oil prices fell on Monday after U.S. President Donald Trump said he was highly unlikely to order new strikes on Iran while talks progressed. Brent fell 1.5% to $96.91 a barrel, while U.S. West Texas Intermediate fell 1% to $89.85.
1. Prices fall as tensions persist
Brent crude fell 1.5% to $96.91 a barrel and U.S. West Texas Intermediate declined 1% to $89.85 by 0629 GMT on Monday. Brent had fallen 16% the previous week, its steepest weekly drop since the start of the COVID pandemic. Attacks on ships in or near the Strait of Hormuz continued to focus attention on supply risks.
2. Supply outlook and attacks
Trump said he was highly unlikely to order fresh attacks on Iran as long as talks to end the conflict progressed. JPMorgan estimated that global oil supply exceeded consumption by 1.1 million barrels per day in September, with the surplus widening to 1.4 million barrels per day in October. The Iran-aligned Houthis claimed responsibility for an attack on Saudi Aramco's offices in Riyadh; no casualties were reported.
