Brent Crude Falls 1.7% As Trump Signals Restraint On Iran

9th November, 2026 | News

Global Oil Prices Slip After US President Trump Eases Iran Strike Concerns

Global oil prices fell on Monday after United States President Donald Trump downplayed the likelihood of renewed military strikes on Iran, easing immediate supply fears in the Middle East despite ongoing shipping disruptions near the Strait of Hormuz.

Brent crude dropped by $1.65, or 1.7 per cent, to $96.67 a barrel, while United States benchmark West Texas Intermediate (WTI) declined by 96 cents, or one per cent, to settle at $89.87.

The downward movement follows remarks made by Trump on Sunday indicating that fresh attacks on Iran are highly unlikely as long as ongoing negotiations to resolve the conflict continue to progress.

Markets Price in Optimism Amid Middle East Uncertainty

While President Trump’s comments helped calm trader anxieties regarding military escalation, uncertainty persists over whether diplomatic efforts will ultimately secure a lasting agreement between Washington and Tehran.

Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet, noted that markets are currently leaning toward a best-case scenario.

“The oil market appears to be pricing in a relatively optimistic scenario of de-escalation, even though a comprehensive agreement between Washington and Tehran has yet to materialise,” Sachdeva said.

She added that crude prices will likely continue carrying a geopolitical risk premium until a formal diplomatic breakthrough is achieved and maritime traffic through the Strait of Hormuz is fully normalised.

Strait of Hormuz Shipping Disruptions Keep Supply Concerns Alive

Despite the easing of direct military tensions, recent vessel attacks in and around the strategic Strait of Hormuz have kept global energy security in focus. Both the United States and Iran reported incidents involving commercial and military vessels near the vital waterway, which serves as a major artery for international oil shipments.

Additional pressures on global energy infrastructure surfaced over the weekend. Iran-aligned Houthi forces claimed responsibility for a drone and missile attack targeting Saudi Aramco’s offices in Riyadh on Sunday. Meanwhile, local authorities confirmed that a separate Ukrainian drone attack triggered a fire at Russia’s Kirishi oil refinery on Monday.

Rising Global Supplies and Weaker Demand Weigh on Prices

Broader market dynamics are also heavily influenced by macroeconomic fundamentals. Last week, Brent crude recorded a 16 per cent decline, marking its steepest weekly drop since the beginning of the COVID-19 pandemic.

According to recent estimates from JPMorgan, global oil production outpaced consumption by 1.1 million barrels per day in September. That surplus is projected to expand further to 1.4 million barrels per day in October, adding downward pressure on prices alongside ongoing geopolitical shifts.