Oil prices dip as Trump says new Iran attacks ‘unlikely’ if talks progress

Oil prices experienced a decline in early trading on Monday, continuing a downward trend observed last week as remarks from U.S. President Donald Trump regarding potential talks with Iran prompted additional speculation about a possible de-escalation of tensions in the Middle East. The price of Brent oil futures for January fell by 0.75% to $97.58 a barrel by 19:02 ET, following a more than 16% drop the previous week.

During a Sunday interview with CNN, Trump expressed his belief that ordering further U.S. attacks on Iran was "highly unlikely" as long as negotiations with Tehran made progress. Simultaneously, the U.S. launched an operation aimed at disrupting Iran's trade of advanced weapons and sanctioned materials through land borders and the Caspian Sea.

Trump announced on social media, "Task Force Iron Gate is in full force and effect in the Islamic Republic of Iran. Coupled with history’s greatest Naval Blockade, very little gets into, or out of, Iran!"

The sharp drop in oil prices came after a Democratic victory in both chambers of the U.S. Congress, which heightened expectations that lawmakers would put pressure on Trump to end the Iran conflict. Washington and Tehran have been at an impasse for nearly nine months, resulting in increased volatility in crude supplies from the Middle East.

Additionally, tensions between Saudi Arabia and Iran-backed Houthi rebels in Yemen persisted, with the Houthis attempting to attack Aramco's corporate office in Riyadh on Sunday. The conflict between Saudi Arabia and the Houthis has been ongoing since mid-2026, with the Yemeni group also imposing a naval blockade against Riyadh.