Oil prices dropped below $90 a barrel on Tuesday after President Donald Trump said further attacks on Iran were “highly unlikely.”
Brent crude fell to $89.66 during morning trading, according to The Guardian, following an almost 6% fall the previous day.
A U.S. Air Force F-22 Raptor backs away from a KC-135 Stratotanker after conducting an in-flight refueling during a training mission over central New Mexico on Oct. 23, 2013. The Raptor is assigned to the 49th Fighter Wing at Holloman Air Force Base, N.M. The Stratotanker is assigned to McConnell Air Force Base, Kan. DoD photo by Airman 1st Class John Linzmeier, U.S. Air Force. (Released)
U.S. Air Force Capt. Samuel “RaZZ” Larson, F-22 Raptor Demonstration Team commander, performs an aerial maneuver in preparation for the ongoing airshow season at Joint Base Langley-Eustis, Virginia, July 9, 2024. Airshows play a crucial role in highlighting the importance of air power in modern warfare and help reinforce the deterrence capabilities of advanced fighter aircraft like the F-22 Raptor. (U.S. Air Force photo by Senior Airman Mikaela Smith)
It marks the lowest level for the global benchmark for oil since August 31.
Hopes Increase Toward Future Peace
At an impromptu press conference on Monday, Trump provided an update following his meeting with Qatari Prime Minister Sheik Mohammed bin Abdulrahman bin Jassim Al Thani at the White House.
Qatar, a U.S. ally, has played a key role in mediation efforts. It is one of several Gulf states whose seaborne exports have been limited by the ongoing closure of the Strait of Hormuz.
On Monday evening, Trump said that “Iran, militarily, is effectively over,” and that there is “positive momentum” behind ongoing discussions to end a conflict that is now into its ninth month.
“We’re just keeping it the status quo,” the president said. “And we’re doing that really at the behest of countries that are their neighbors.”
While a renewed military offensive against Iran remains “highly unlikely,” Trump said the U.S. was “locked and loaded” should further strikes be required.
Trump Doubles Down on War Prospects
The president had made similar comments to journalists in his first televised interviews since the Republican Party lost control of both chambers of Congress in the midterm elections last week.
Speaking to CNN in an interview released on Sunday, Trump said a renewed campaign against Iran would depend on “whether or not they sign a very strong agreement.”
“The answer is highly unlikely it’s going to be necessary,” the president added. “They’re a failing nation. It just came out, you saw this year, 301% inflation. Highly unlikely it will be necessary. I would, if necessary, but we hit them really hard. I hit them so hard. You don’t know how hard I hit them.”
He continued: “So it’s highly unlikely I’ll have to. They’re withering away financially. We’ve hit them militarily. We could finish them off.”
Nevertheless, Trump told Jim Sciutto that the door remains open to further strikes in the region. “I’ve got three aircraft carriers here. The other one just arrived. We have three. They’re fully locked and loaded,” he told CNN. “We have 38 bridges in our sight that we can knock down in literally one hour.”
Optimism Follows White House Disagreements
Trump’s change in tone comes just days after a report from The Wall Street Journal said that Defense Secretary Pete Hegseth and the U.S. Central Command chief Adm. Brad Cooper were pressing Trump to resume military action against Iran.
The Journal reports that outside advisers have told the president that his legacy depends on forcing Iran to abandon its nuclear program.
Secretary of State Marco Rubio also said that efforts to find a diplomatic solution had been unproductive and were not approaching a breakthrough.
“The president would always prefer to solve this and every problem diplomatically,” Rubio said on Sunday. “Sometimes that’s not possible, unfortunately, but if there’s a chance to do it, we’ll explore it.”
He continued: “Right now, it hasn’t been very productive, because the Iranian demands are simply not just unacceptable, but, in some cases, outrageous and ridiculous, and really not realistic.”
Tehran’s demands include the removal of economic sanctions, the lifting of the U.S. naval blockade, and an end to the war on all fronts.
Oil Prices Fall To Recent Lows
Tuesday morning marked the first time since the end of August that Brent crude fell below $90 per barrel.
Stock markets also climbed, with Europe’s benchmark Stoxx 600 index rising to 662.69 — surpassing its record high from early August, when hopes of a permanent agreement to end the conflict were growing. Airline stocks also rose amid hope that regional stability could lead to lower fuel prices, with Lufthansa and Air France-KLM up 1.8% and 1.97%, respectively, as of 9 a.m. EST.
Daniela Hathorn, a senior market analyst at Capital.com, told The Guardian: “Global markets are extending their recovery this morning after Wall Street recorded a strong session that was relatively broad-based, supported by a sharp decline in oil prices and renewed buying in technology stocks.”
About the Author: Shay Bottomley
Shay Bottomley is a British journalist. He has written for the Western Standard, Business Insider, Maidenhead Advertiser, Slough Express, Windsor Express, Berkshire Live and Southend Echo.
