Crude oil prices dropped during early Asian trading on Friday, October 9, following remarks from US President Donald Trump. He stated that the US would not attack Iran before the mid-term elections scheduled for November 3. Brent crude prices fell by 0.6%, after gaining over 4% the previous day to close above $104 per barrel. US Crude, or West Texas Intermediate, also saw similar losses, trading around $90 per barrel.
In a post on Truth Social on Thursday, Trump mentioned that the US was engaged in productive discussions with Iran. He emphasized that the Strait of Hormuz remains under US control and assured that Iran would not acquire a nuclear weapon. Trump also noted that oil flowing through the Strait of Hormuz is at record volumes. His comments came amidst increased attacks on oil and commercial tankers in the region.
According to the UK Maritime Organization, there were at least nine attacks in the Strait of Hormuz and the Persian Gulf during the first week of October, already half of the total attacks recorded in September. Despite Trump's assurances, the New York Times reported that the US had prepared plans to attack Iran, targeting drone and missile arsenals, energy facilities, and other sites. Elevated prices are also attributed to the ongoing conflict between Saudi Arabia and the Houthis in Yemen and rising tanker freight rates.
Iran's Fars news agency reported heavy explosions in the Strait of Hormuz late Thursday night, citing unidentified military sources. The report claimed that oil tankers attempting to cross the southern route were hit by mines, though there is no independent confirmation. Additionally, crude oil traders are monitoring Hurricane Isaias, expected to hit the US Gulf Coast late Friday or early Saturday, with about 1.3 million barrels per day of oil supply affected due to the storm.