WTI drops to near 101.00 as Trump rules out immediate Iranian strikes

West Texas Intermediate (WTI) oil prices slipped to approximately $101.10 amid Asian trading hours on Monday, after surging over 4% the previous trading day. The decline occurred following US President Donald Trump's assertion that there would be no immediate military action against Iran. Trump's comments came after previous remarks indicating Washington might need to "finish the job" or potentially reach a deal with Tehran amid escalating threats from Iran and Houthi rebels against American interests in the region.

However, concerns linger that strikes against Iran could resume following the Israeli and US midterm elections this week, with Iran reportedly ready to retaliate by targeting Israel and the UAE. Meanwhile, Yemen's Houthi rebels vowed to continue targeting Saudi Arabia's King Khalid Airport in Riyadh, despite Saudi officials reporting that flights had resumed following previous attacks by the group.

Conflict in the region continued over the weekend, with the Houthis claiming attacks on the Saudi airport and oil facilities, while Saudi Arabia stated it had intercepted additional missiles and drones. With the US midterm elections approaching, President Trump is employing costly and politically sensitive measures to address high diesel prices, including offering billions to farmers, relaxing regulations for truckers, easing sanctions on Russian fuel, and pressuring European allies to release emergency oil stocks.

Analysts expect crude prices to remain supported in the coming weeks due to heightened geopolitical risk, particularly ahead of the Israeli elections and US midterm elections.