08.10.202623:28:08UTC+00Oil Prices Ease on Trump’s Remarks About Iran

Crude oil retreated toward $91 per barrel on Friday, paring gains from the previous session after President Donald Trump wrote on social media that the US was engaged in “productive discussions” with Iran and would avoid attacking the country before the midterm elections. Trump also asserted that record volumes of crude were moving through the Strait of Hormuz, while emphasizing that the US naval blockade of Iranian ports would remain fully in force.

Subsequent reports, however, indicated that the US had drawn up plans for three days of strikes on Iran, focusing on drone and missile stockpiles, energy infrastructure and other strategic targets. On Thursday, oil prices had jumped as much as 5.6% after Tehran escalated attacks on tankers transiting the Strait of Hormuz, with nine vessels reportedly targeted over the past week.

At the same time, Hurricane Isaias threatened offshore production in the Gulf of Mexico, leading producers to shut in roughly 1.3 million barrels per day of crude output.