Oil prices extended their decline on Tuesday after US President Donald Trump indicated that further military action against Iran was not necessary for now, easing concerns over prolonged disruptions to Middle Eastern supplies.
Brent crude futures fell 0.75% to $91.88 a barrel, while US West Texas Intermediate (WTI) crude declined 0.90% to $86.07. The benchmarks had already dropped sharply on Monday, with Brent settling 5.85% lower at $92.57 and WTI falling 4.4% to $86.85.
Trump said on Monday he would hold off on fresh strikes against Iran following appeals from regional countries, including Qatar.
He also indicated that the US naval blockade in the Strait of Hormuz would remain in place.
Qatar’s Prime Minister Mohammed bin Abdulrahman al-Thani met Trump at the White House to discuss mediation efforts. However, prospects for an immediate agreement remain uncertain, with Iranian officials questioning Washington’s approach.
Despite easing market concerns, attacks on shipping near the Strait of Hormuz continue. OPEC oil production also increased in October, led by Saudi Arabia, Kuwait and Iraq, according to a Reuters survey.
Analysts said sustained price declines would depend on diplomatic progress and lower tanker transportation costs, while continued maritime risks could keep oil markets volatile.
