Oil prices fell after President Donald Trump announced that the US would not attack Iran before the upcoming midterm elections in November. The statement came as a relief to markets that had seen crude prices surge earlier in the week. Brent crude dropped toward $103 a barrel after a 4% spike the previous day, while West Texas Intermediate (WTI) dipped below $91.
Trump made the announcement on social media, noting that there had been "productive discussions" with Iran. He also emphasized that oil was flowing through the Strait of Hormuz at record volumes, which likely contributed to the easing of tensions and the subsequent decline in oil prices.
The market reaction was swift, with investors interpreting Trump's remarks as a signal that geopolitical risks in the region were temporarily subsiding. The earlier surge in oil prices had been driven by concerns over potential disruptions in supply due to escalating tensions between the US and Iran.