World oil prices continued to decline on Tuesday, November 10, after a sharp drop the previous day. Investors are betting on a possible end to the US war with Iran after President Donald Trump said there was no need for new military strikes.
This was reported by Bloomberg and Financial Times.
On the morning of November 10, the international benchmark Brent fell below $92 per barrel, while US oil West Texas Intermediate (WTI) traded near $86.
The previous day, Brent ended trading down 5.9% at $92.57 per barrel, and WTI lost 4.4%, dropping to $86.85. During Monday's session, Brent fell to $90.56, its lowest level since August 31.
The new decline was triggered by Trump's statements regarding the prospects for further military action against Iran.
On Monday, after a meeting with Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, the US president told reporters that he saw no need for new strikes on Iran.
"Iran is practically finished militarily", Trump said, while emphasizing that US forces remain in full combat readiness.
According to the US president, Washington intends to maintain the current situation for now, but is ready to change its position if the situation requires new actions.
The statement came amid diplomatic efforts to end the conflict. Qatar is mediating negotiations between the US and Iran, and the American administration increasingly signals its readiness to seek a political settlement.
Expectations of an end to the war intensified after the US midterm elections, in which Republicans were defeated. According to Bloomberg, Democrats are considering using the December 11 budget deadline to pressure the Trump administration to end the conflict, which has been going on for nine months.
The oil market primarily reacts to the prospect of reduced risks to energy supplies from the Middle East. In recent months, military actions and threats to shipping in the Persian Gulf have maintained a heightened geopolitical premium on oil prices.
Last week, Brent recorded its largest weekly drop since April 2020, excluding the peculiarities of futures contract changes.
Financial Times notes that prices on the physical oil market are falling even faster than on the futures market. The price of Dated Brent, which reflects the price of oil for immediate delivery to Europe, fell to $92.25 per barrel on Monday. In early October, the indicator exceeded $136.
However, the softening of Washington's rhetoric does not yet mean the achievement of a peace agreement or the removal of risks to the oil market.
The US continues the naval blockade of Iranian ports, while Tehran insists on its termination and the lifting of sanctions. Washington, for its part, demands security guarantees for shipping in the Strait of Hormuz and concessions on Iran's nuclear program.
In addition, attacks on commercial vessels in the region continue. According to FT, British maritime services reported tankers hit by unknown projectiles in the Strait of Hormuz and near the Persian Gulf.
Analysts emphasize that further dynamics of oil prices will depend on real progress in negotiations between Washington and Tehran. In the absence of agreements, risks of new escalation and supply disruptions will remain a factor of market instability.
Earlier, "Kurs Ukrainy" reported that on November 9, oil continued to fall after the largest weekly decline in several years, despite new attacks in the Middle East.
Source: Bloomberg, Financial Times
