Oil Falls as Trump Signals Restraint on Iran Strikes

Oil prices fell on Monday as traders assessed President Donald Trump’s statement that renewed U.S. strikes on Iran were highly unlikely if negotiations produced a strong agreement, alongside reports of attacks on shipping near the Strait of Hormuz. The remarks eased concerns about an immediate escalation, but the talks’ prospects remained uncertain.

At 1219 GMT, Brent crude was down $3.49, or 3.6%, at $94.83 a barrel, while U.S. West Texas Intermediate had fallen $2.66, or 2.9%, to $88.17. Those were intraday prices, and earlier reports recorded smaller declines at different times. Brent had also fallen about 16% the previous week, its steepest weekly drop since the start of the COVID-19 pandemic, according to reports.

Trump told CNN that further strikes would depend on whether Iran signed what he described as a very strong agreement. He said renewed attacks were highly unlikely if negotiations continued to make progress, leaving military action conditional on the outcome of talks.

Shipping risks persisted. The United States and Iran each reported that vessels had been hit in or near the Strait of Hormuz over the weekend. The waterway is an important route for energy shipments,...