Brent Falls Below $90 as Trump Signals Restraint on Iran

The front-month Brent contract was at $89.70, while U.S. benchmark West Texas Intermediate traded below $85 a barrel, down more than 2%. Brent had already fallen below $92 at the start of Asian trading after reports that Trump was not planning to attack Iran “at this point.”

The price decline came despite continued Houthi attacks on Saudi energy infrastructure. The latest targeted the East-West pipeline and caused a “limited fire,” which was extinguished, according to an official from Saudi Arabia’s energy ministry. Traders in Europe appeared focused on the prospect that a Qatar-mediated diplomatic push could produce an agreement.

Brent fell 17% last week, its steepest weekly decline since the volatile period in 2020 during the COVID pandemic. It is now down about 25% from its late-October peak above $117 a barrel.

Ole Hansen, head of commodity strategy at Saxo Bank, said hopes for an end to the eight-month-old Middle East conflict had strengthened after the U.S. midterm elections. Trump’s comments added to that optimism, he said. Although crude flows have almost returned to pre-war levels, supplies of liquefied natural gas and refined products remain constrained, keeping prices elevated, particularly for diesel. Hansen said the market would watch for fresh signals from Washington and Tehran on the prospects for a diplomatic breakthrough.