Brent crude falls 1.36% as Middle East tensions ease

Oil prices declined on Friday after US President Donald Trump stated that the United States would not attack Iran before the mid-term elections on November 3, citing productive discussions with Tehran. Bank MUFG noted in a report that oil prices retreated as those comments cooled expectations of an imminent strike.

Around 8:20 a.m., Brent crude for December delivery fell 1.36% to $102.86 per barrel on the Intercontinental Exchange (ICE). On the New York Mercantile Exchange (Nymex), West Texas Intermediate (WTI) crude for November delivery declined 1.05% to $90.53 per barrel.

Price losses remained limited by ongoing geopolitical tensions and supply disruptions. MUFG highlighted that the conflict between Saudi Arabia and its allies against the Houthis keeps geopolitical risk elevated, while navigation in the Gulf and the Strait of Hormuz remains under threat.

Weather disruptions in the United States also supported prices. The passage of Hurricane Isaias across the US Gulf Coast affected production, putting around 500,000 barrels per day of capacity at risk.