Oil falls as Trump comments on Iran talks ease supply concerns

Oil prices dropped on Friday after US President Donald Trump expressed optimism about Iran talks, easing Middle East supply worries. Brent crude futures fell 72 cents, or 0.7%, to $103.53 a barrel, while US West Texas Intermediate (WTI) crude futures declined 52 cents, or 0.6%, to $90.97. Although Brent prices were expected to rise weekly due to a surge in attacks on crude ships, WTI faced a minor weekly decline from a hurricane threatening the Gulf of Mexico, the world's largest oil producer.

On Thursday, Trump announced "productive discussions" with Iran, stating no attack was planned before the November 3 midterm elections. Iran's Foreign Minister Abbas Araqchi revealed on the same day that Tehran was evaluating the US response to a proposal reopening the Strait of Hormuz within seven days. The US continued to pressure Iran economically, imposing fresh sanctions on Thursday targeting entities involved in transporting Iranian crude, oil products, and petrochemicals.

Market volatility persisted this week as threats to oil shipping in the Gulf and the Strait of Hormuz escalated, with October shipments accounting for about 20% of global oil and fuel. Hurricane Isaias in the Gulf of Mexico further disrupted production, with US producers shutting in approximately 1.3 million barrels per day, or 62.9%, of daily oil output as of Thursday.