Global oil prices fall as Trump signals progress in talks with Iran

Global oil prices declined on Friday after US President Donald Trump indicated progress in negotiations with Iran

Global oil prices declined on Friday after US President Donald Trump indicated progress in negotiations with Iran and said the United States did not intend to launch an immediate military attack, according to international media reports.

Brent crude futures fell by 72 cents, or 0.7 per cent, to $103.53 per barrel, while US West Texas Intermediate (WTI) crude dropped by 52 cents, or 0.6 per cent, to $90.97 per barrel.

Trump recently stated that Washington was engaged in productive negotiations with Tehran and had no plans to attack Iran before the US midterm elections scheduled for November 3. His remarks raised hopes among investors that diplomatic efforts could help bring an end to the ongoing conflict in the Middle East and improve the flow of oil supplies through key international shipping routes.

However, concerns about further military escalation remain, and market participants continue to monitor developments closely.

Oil prices had risen by nearly 4 per cent on Thursday following attacks on vessels transporting oil from the Middle East. The incidents heightened fears of potential disruptions to global energy supplies, particularly through the Strait of Hormuz, a strategically important waterway for international oil transportation.

Any prolonged disruption to shipping through the strait could significantly affect global crude supplies and place upward pressure on prices. Consequently, investors remain cautious despite the latest decline in oil benchmarks.

Meanwhile, the United States has imposed fresh sanctions targeting individuals, networks and 17 vessels linked to Iran’s oil and petrochemical sectors. The measures add further uncertainty to the outlook for Iranian oil exports and regional energy trade.

The sanctions come as Washington continues its economic pressure on Tehran while negotiations are reportedly underway. Investors are assessing whether diplomatic engagement can ease tensions or whether disagreements between the two countries could lead to further confrontation.

Separately, a tropical storm in the Gulf of Mexico has raised concerns about possible disruptions to US oil production. Any weather-related interruption could further complicate the global supply situation, particularly as energy markets remain sensitive to developments in the Middle East.

Despite Friday’s decline, crude prices remain exposed to sudden fluctuations driven by geopolitical developments, supply disruptions and changing investor expectations. The market continues to balance hopes for a diplomatic breakthrough against the risks posed by sanctions, military tensions and threats to maritime transportation.

Energy analysts believe the future direction of international oil prices will largely depend on the progress of negotiations between the United States and Iran, the security situation in the Strait of Hormuz and the broader military developments across the region.

A successful diplomatic outcome could reduce concerns about supply disruptions and place further downward pressure on prices. Conversely, renewed attacks on oil shipments, an escalation in hostilities or additional restrictions on exports could reverse the recent decline.

For now, global energy markets remain uncertain, with investors closely watching diplomatic and security developments to determine whether the recent fall in oil prices will continue or prove temporary.