Oil prices fell on Friday, October 9, after President Donald Trump ruled out a US attack on Iran before the November elections.
The announcement eased concerns about further disruptions to global energy supplies.
Brent crude futures dropped 0.7% to $103.53 per barrel in early trading. US West Texas Intermediate (WTI) fell 0.6% to $90.97 per barrel.
The decline followed a sharp rise in prices on Thursday, when growing tensions in the Middle East pushed oil higher.
Trump Says US and Iran Are Holding Productive Talks
Trump said Washington was holding productive discussions with Iran to end the ongoing conflict.
He also stated that the United States would not launch an attack before the November 3 congressional elections.
The comments reduced fears of an immediate military escalation.
However, uncertainty remains over the future of oil shipments from the Middle East.
Iranian Foreign Minister Abbas Araqchi said Tehran was reviewing a US response to its proposal for reopening the Strait of Hormuz.
The proposal could allow the important shipping route to reopen within seven days.
Before the war, shipments through the strait represented around 20% of global oil and fuel supplies.
The United States continues to pressure Iran through economic sanctions.
On Thursday, Washington announced new sanctions targeting individuals, shipping networks and 17 vessels linked to Iranian oil exports.
Hurricane Disrupts US Oil Production
Oil markets are also facing supply disruptions in the Gulf of Mexico.
Hurricane Isaias has forced energy companies to suspend production at offshore facilities.
According to US authorities, approximately 1.3 million barrels of daily oil production were offline on Thursday.
That represents nearly 63% of the region’s current production.
The shutdowns have added pressure to an already unstable global energy market.
Despite Friday’s decline, Brent crude remains on track for a weekly increase.
Prices rose about 4% on Thursday following renewed attacks on oil shipments in the Middle East.
Meanwhile, WTI is expected to record a slight weekly decline.
Investors continue to monitor diplomatic talks, shipping security and the impact of the hurricane.
Further developments could influence fuel prices in the United States and international markets.
