Oil edges lower as Trump plays down prospect of new US attacks on Iran

Oil prices slipped on Monday as US President Donald Trump downplayed the likelihood of new attacks on Iran, despite ongoing disruptions at the Strait of Hormuz. Brent crude fell 1.83% to $96.52 per barrel, while US West Texas Intermediate crude dropped 1.30% to $89.65 per barrel. Market insights expert Noureldeen Al Hammoury attributed the price decline to "renewed selling pressure as markets increasingly price in the possibility of a diplomatic breakthrough between Washington and Tehran."

Trump indicated he is unlikely to resume war with Iran, as he faces criticism to end the nine-month conflict following his party's midterm election loss. He told CNN it is "highly unlikely" he will again wage war with Iran as long as negotiations progress over Tehran’s nuclear program. Qatar's Prime Minister is expected to meet Trump at the White House on Monday, potentially paving the way for a breakthrough in talks.

The Strait of Hormuz, which accounts for about 20% of global oil and liquefied natural gas shipments before the conflict, remains a critical chokepoint for global energy supply. Iran's Islamic Revolutionary Guard Corps reported three oil tankers exploded and caught fire in the strait after breaching Iranian regulations. Al Hammoury noted that while Brent is expected to face further downward pressure, continued attacks on regional infrastructure and uncertainty in negotiations could quickly reverse sentiment.

Investors are closely monitoring Saudi Arabia, as Houthi rebels attacked Riyadh, including King Khalid International Airport, Aramco oil storage sites, and the city’s financial center.