Oil slides as Trump signals restraint on Iran despite fresh shipping attacks
USO•Oil prices fell on Monday after Trump said he was highly unlikely to order fresh attacks on Iran. Brent dropped 3.6% to $94.83 a barrel, after falling 16% last week, its steepest weekly decline since April 2020.
1. Prices fall sharply
Brent crude fell $3.49, or 3.6%, to $94.83 a barrel by 1219 GMT, while US West Texas Intermediate lost $2.66, or 2.9%, to $88.17. Brent dropped 16% last week to a two-month low of $93.22.
2. Iran comments weigh
Trump said on Sunday that he was highly unlikely to order fresh attacks on Iran as long as talks to end the conflict progressed, even as both countries reported shipping had been hit in or near the Strait of Hormuz. Analysts cited hopes of a US-Iran peace deal and weakness in the physical market as factors weighing on prices.
3. Supply concerns persist
JPMorgan estimated a global oil surplus of 1.1 million barrels per day in September, widening to 1.4 million bpd in October, citing recovering Middle Eastern flows, rising production elsewhere and weak demand. The Iran-aligned Houthis claimed responsibility for an attack on Saudi Aramco's offices in Riyadh on Sunday.
