Oil Prices Extend Decline After Trump Signals Restraint on Iran — Update

By Farhan Rafid

Oil prices extended their losses Tuesday, with Brent crude briefly falling below $90 a barrel before rebounding, as President Trump signaled that further U.S. military strikes on Iran weren't necessary for now, raising hopes of an easing in the Middle East conflict.

Front-month Brent crude, the global oil benchmark, fell 2.1% to $90.61 a barrel, while West Texas Intermediate futures declined 1.9% to $85.18 a barrel.

The losses followed Monday's selloff, when Brent dropped nearly 6% as traders reassessed the prospect of renewed U.S. military action against Iran. Oil prices have fallen since last week's U.S. midterm elections, which increased expectations of a diplomatic resolution to the conflict.

Trump said Monday that he saw little need for further military strikes against Iran as negotiations continued, following talks with Qatar's prime minister, who has been mediating between Washington and Tehran. However, he indicated that the U.S. military remained prepared to act if circumstances changed.

The diplomatic signals have prompted a sharp reassessment of the geopolitical risk premium in oil prices, according to UOB's global economics and markets research team.

Still, a diplomatic breakthrough remains uncertain, with Washington and Tehran yet to reach an agreement on ending the conflict or restoring normal shipping through the Strait of Hormuz.

Meanwhile, signs of easing supply tightness have emerged as Middle Eastern oil production recovers. MUFG said Monday that the spread between the nearest Brent futures contracts had narrowed to around $2.60 a barrel from nearly $4 at the end of last week, while physical crude prices were trading below futures.

The decline in crude prices is also beginning to feed through to U.S. consumers. The national average price of regular gasoline fell below $4 a gallon Tuesday to $3.97, according to the American Automobile Association, extending a decline from around $4.17 a week earlier.

Write to Farhan Rafid at farhan.rafid@wsj.com

(END) Dow Jones Newswires

November 10, 2026 05:02 ET (10:02 GMT)