Oil falls as Trump comments on Iran talks ease supply concerns

Oil prices experienced a decline on Friday as Middle East supply concerns began to ease, thanks to productive discussions between the United States and Iran. US President Donald Trump stated that the US would not attack Iran before the November 3 midterm congressional elections, even though media reports suggested he was considering an attack prior to then.

Brent crude futures declined by 72 cents, or 0.7%, to $103.53 a barrel, while US West Texas Intermediate (WTI) crude futures fell by 52 cents, or 0.6%, to $90.97. However, Brent prices are still projected for weekly gains, despite a 4% increase on Thursday due to multiple attacks on shipping vessels carrying crude from the Middle East.

Despite the supply disruptions caused by a hurricane approaching the Gulf of Mexico coastline, the world’s largest oil producer, WTI crude is expected to see a slight weekly decline. On Thursday, Trump revealed that Washington was having productive talks with Iran and affirmed that no attack was planned before the midterm elections.

Iran's Tasnim news agency reported the same day that Foreign Minister Abbas Araqchi stated that Tehran was reviewing the US response to its proposal, which would reopen the Strait of Hormuz within seven days. The US continues to enforce economic sanctions on Iran, including fresh sanctions imposed on Thursday targeting individuals, networks, and 17 vessels involved in transporting Iranian crude, oil products, and petrochemicals.

The oil market has been volatile this week due to threats to oil shipping in the Gulf and the Strait of Hormuz, which previously carried shipments equivalent to approximately 20% of global oil and fuel before the war erupted. Additionally, Hurricane Isaias is affecting the Gulf of Mexico, causing about 1.3 million barrels per day, or 62.9%, of current oil production to be shut in as of Thursday, according to the US Marine Minerals Administration.