Oil prices dropped sharply on Monday after US President Donald Trump played down the chances of renewed strikes on Iran, while attacks on ships near the Strait of Hormuz kept supply concerns in focus.
Trump said on Sunday that he was highly unlikely to order new attacks on Iran while talks to end the conflict continued, even as both countries reported attacks on shipping in or near the Strait of Hormuz.
He had hinted at renewing attacks on Iran after last week’s US midterm elections, but there has been no sign of a large-scale US military operation. Iran has said it would respond by striking US and Israeli targets.
Brent crude fell $3.49, or 3.6%, to $94.83 a barrel, while US West Texas Intermediate fell $2.66, or 2.9%, to $88.17.
The Brent benchmark plunged by 16% last week to touch a two-month low of $93.22.
Oil is reportedly heading for another surplus as recovering Middle Eastern flows, rising production elsewhere, and weak demand push global supply above consumption, according to a JPMorgan report.
By CEO NA Editorial Staff
