Global oil prices fell sharply on Monday after US President Donald Trump played down the likelihood of renewed strikes on Iran.
However, attacks on ships near the Strait of Hormuz continued to raise concerns about supply disruptions.
According to media reports, Brent crude futures dropped $3.49, or 3.6%, to $94.83 per barrel by 1219 GMT, while US West Texas Intermediate fell $2.66, or 2.9%, to $88.17. Brent had plunged 16% last week, recording its steepest weekly decline since the start of the COVID-19 pandemic.
Trump said on Sunday that fresh attacks on Iran were unlikely as long as negotiations to end the conflict continued. However, Tehran and Washington reported attacks on shipping in or near the Strait of Hormuz, a critical global oil transit route.
Analysts said expectations of a potential US-Iran peace deal and continued oil shipments from the Middle East had weighed on prices. Meanwhile, JPMorgan warned that rising production and weak demand could push the global oil surplus to 1.4 million barrels per day in October.
Separately, Yemen’s Houthi group claimed responsibility for an attack on Saudi Aramco’s offices in Riyadh, while a Ukrainian drone strike sparked a fire at Russia’s Kirishi oil refinery on Monday.
Iran Defends Two-Day Hormuz Reopening Plan, Urges US to Make ‘Genuine Decision’
