Oil Prices Slip as Trump Rules Out Iran Strike Before Midterms

Oil prices edged lower on Friday after U.S. President Donald Trump said Washington would not launch military strikes against Iran before the November midterm elections, easing concerns over potential disruptions to Middle East crude supplies.

By 16:30 ET (20:30 GMT), Brent crude futures declined 0.3% to $104.40 per barrel, while U.S. West Texas Intermediate (WTI) crude futures slipped 0.2% to $91.64.

Brent remained slightly higher for the week following a 4% surge on Thursday, while WTI was heading toward a weekly loss amid continued uncertainty surrounding global oil markets.

Trump said Thursday that the United States would not attack Iran before the November 3 elections, reversing market expectations following reports that the Pentagon was considering military action ahead of the vote.

The president also described ongoing negotiations with Tehran as productive. Iran's foreign minister reportedly confirmed that officials were reviewing a U.S. proposal and expected to respond within days.

Deutsche Bank analysts noted that confirmation of diplomatic discussions helped reduce pressure on crude oil prices. However, investors continued pricing in prolonged supply disruptions extending into next year.

Despite signs of diplomatic progress, geopolitical tensions remain elevated across the Middle East. The Strait of Hormuz, which handled approximately 20% of global oil and liquefied natural gas shipments before the conflict began in February, continues to face significant shipping security risks.

Meanwhile, fighting between Saudi-backed forces and Houthi militants intensified in Yemen, raising concerns about maritime trade through the strategically important Bab el-Mandeb Strait. Houthi forces also claimed attacks targeting infrastructure in Saudi Arabia.

Supply disruptions have extended beyond the Middle East. A powerful storm near the U.S. Gulf Coast forced offshore producers to suspend approximately 1.3 million barrels per day of production, representing 62.9% of regional output, according to government data cited by Reuters.

Although Middle Eastern exporters briefly restored shipments to pre-war levels last month, elevated transportation costs and shortages of refined petroleum products continue supporting energy prices.

Meanwhile, China, the world's largest crude oil importer, is preparing to resume refined fuel exports following its Golden Week holiday, adding downward pressure to global oil markets.

Oil prices remain sensitive to developments involving U.S.-Iran negotiations, regional shipping security, and global supply conditions as traders assess the outlook for crude demand and production.