Oil Prices Ease as Trump Says Further Iran Strikes Are Unlikely

Both benchmarks were trading above their opening levels in Asia at the time of writing, but remained below prices from a week earlier. Trump told CNN on Sunday that the need for further attacks would depend on whether Iran signed “a very strong agreement.” He said the United States had already hit Iran hard, while leaving open the possibility of more action if necessary.

The remarks eased concerns about an immediate escalation, but traders are still weighing whether they signal a lasting change in U.S. policy. KCM Trade chief analyst Tim Waterer said the market was watching to see whether the midterms had prompted a lasting shift in Trump’s approach or whether his comments represented a temporary change in tone, Reuters reported.

Brent and WTI each fell 13% last week following the Democrats’ victory in the midterms. Saxo Bank’s Ole Hansen said at the end of the week that expectations of an end to the conflict, alongside recovering Middle East crude flows, had raised hopes that supply disruptions and elevated energy prices could gradually ease.

Fresh reports from the Strait of Hormuz have complicated that outlook. Iran’s Islamic Revolutionary Guard Corps said three tankers were on fire there on Sunday. Reports also described new Houthi strikes on Saudi targets, underscoring the continuing security risks to oil shipments and regional supply.