WTI falls to near $89.50 as Trump hints at reduced US-Iran tension

West Texas Intermediate (WTI) oil prices slipped to near $89.50 on Monday after remaining steady in the previous day. The decline occurred as US President Donald Trump suggested that further military strikes on Iran are unlikely if substantial progress is made in negotiations concerning Iran's nuclear program and the reopening of the Strait of Hormuz.

Trump also commented that the contentious Middle East conflict has contributed to rising oil and gasoline prices, potentially playing a role in the Republicans' significant losses during the recent midterm elections.

In a phone interview with CNN, Trump mentioned that a decision on military action would depend on whether Iran agrees to a robust agreement. He noted that additional military operations were probably not necessary. Despite earlier indications of renewed major attacks following the midterms, no large-scale US military operations have taken place. Iran has, however, warned of retaliation against any future strikes by targeting US and Israeli assets.

Diplomatic progress in the region hints at a potential resolution. Iraqi Foreign Minister Fuad Hussein stated in an Al Jazeera interview that Iraq and the United States have reached agreements to resume oil exports through the Strait of Hormuz via a shipping lane near Oman. Hussein emphasized the severe economic impact of the conflict, revealing that Iraq's losses from the Iran war and oil export disruptions have amounted to $60 billion.

While WTI oil prices plummeted last week due to expectations of Democrats pushing for an expedited end to the conflict, high-level skepticism persists. US Secretary of State Marco Rubio expressed caution regarding an immediate breakthrough, describing Iran's current negotiation demands as unfeasible. WTI Oil, a high-quality crude oil sold on global markets, is a benchmark for the oil market and frequently quoted in the media.