Oil Falls as Trump Iran Talk Comments Ease Supply Fears

• Brent is still set for weekly gains after rising 4% Thursday due to increased attacks on Middle East shipping earlier in the week
• The Strait of Hormuz, which carried about 20% of global oil and fuel shipments before the war, remains a key concern as Iran reviews a US proposal to reopen it within seven days
• Hurricane Isaias forced Gulf of Mexico producers to shut in 1.3 million barrels per day (62.9% of current production), while the US imposed fresh sanctions on 17 vessels transporting Iranian crude

Oil Falls as Trump Iran Talk Comments Ease Supply Fears

Key Price Movements:

Oil prices declined Friday as Middle East supply concerns eased following diplomatic developments. Brent crude fell 72 cents (0.7%) to $103.53 per barrel, while WTI dropped 52 cents (0.6%) to $90.97 by 0220 GMT.

Main Developments:

President Trump announced the U.S. will not attack Iran before November 3 midterm elections, citing "productive discussions" to end the eight-month conflict disrupting global oil markets. Iran's Foreign Minister Abbas Araqchi confirmed Tehran is reviewing a U.S. proposal that could reopen the Strait of Hormuz within seven days.

Market Context:

Despite Friday's decline, Brent is positioned for weekly gains after surging 4% Thursday due to increased attacks on Middle East shipping earlier in the week. The Strait of Hormuz carried approximately 20% of global oil and fuel shipments before the war, making the conflict a critical supply concern.

Additional Supply Factors:

The U.S. imposed fresh sanctions Thursday targeting individuals, networks, and 17 vessels transporting Iranian crude and petrochemicals, maintaining economic pressure on Tehran. Separately, Hurricane Isaias forced Gulf of Mexico producers to shut in 1.3 million barrels per day—62.9% of current regional production—according to the U.S. Marine Minerals Administration.

Market Implications:

Price volatility persisted throughout the week as threats to Gulf shipping escalated in October. While diplomatic progress offers near-term relief, ongoing geopolitical tensions, continued sanctions, and hurricane-related disruptions in the world's largest oil-producing nation suggest sustained market uncertainty ahead.