Manus on Markets: Pressure eases after Trump’s comments on Iran war

Oil prices slid on Tuesday, with further declines following an earlier drop, after US President Donald Trump indicated that military action against Iran is not required at this time, reducing worries about persistent disruptions to Middle East supply. Brent crude futures slipped 24 cents, or 0.23%, to $92.33 a barrel by 0102 GMT, while US West Texas Intermediate (WTI) futures dropped 35 cents, or 0.40%, to $86.50 a barrel. Brent settled 5.85% lower in the prior session after tumbling to its lowest level since August 31.

During a Reuters interview and a subsequent appearance in the White House press briefing room, Trump stated he intends to halt new military strikes against Iran for now, following appeals from regional countries like Qatar's prime minister at White House talks. Despite ongoing incidents of attacks on shipping around the Strait of Hormuz, the market's focus remains on President Trump's more diplomatic approach towards Iran since the midterm elections, according to Tim Waterer, chief market analyst at KCM Trade.

Although shipping assaults continue, they have not intensified enough to introduce a fresh risk premium into the market, he added.

Senior US and Gulf officials express doubt about the likelihood of an imminent peace agreement between Washington and Tehran. Iranian security council chief Mohsen Rezaei urged the US to cease spreading false information about nonexistent negotiations and acknowledged it was time to comply with Iran's seven conditions. On the supply side, OPEC oil output increased in October, according to a Reuters survey, driven by gains in Saudi Arabia, Kuwait, and Iraq, despite ongoing export constraints.

Separately, Russian and Ukrainian officials are set to convene for two days of US-mediated talks - their first since February - following Trump's recent suggestion that a comprehensive peace deal could be achievable in their four-and-a-half-year conflict, potentially including European security.