Brent oil falls more than 5% as Trump signals restraint on Iran

Brent crude futures fell 5.2% to $93.27 a barrel by 2.27pm GMT, their lowest level since early September, Reuters reported. US West Texas Intermediate crude was down 4.5% at $86.71. Both figures are intraday prices, not closing levels.

Trump said on Sunday that he was highly unlikely to order fresh attacks on Iran as long as talks to end the conflict progressed. His comments came as both countries reported that ships had been hit in or near the Strait of Hormuz, an important route for Gulf oil shipments.

Saxo Bank analyst Ole Hansen told Reuters that oil was trading lower on hopes of a US-Iran peace deal “rather than concrete signs of progress”. He said Trump’s comments had added to the pressure on prices.

UBS analyst Giovanni Staunovo also pointed to weakness in the physical oil market, supported by still-elevated flows from the Middle East.

Brent had already fallen 16% last week, according to Reuters. That included a drop of more than 7% on 2 November, when it settled at $104.77 a barrel.