Brent Crude Falls Below $90 for First Time Since August as Trump Downplays Iran Strike Necessity

Brent crude oil dropped below $90 a barrel on November 10 for the first time since August 28, while WTI fell below $85 a barrel, after President Donald Trump said there is "no need at present" for further military action against Iran. Trump also said he believed the conflict was "going to be ending fairly soon," following a White House meeting with Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani on November 9. European natural gas prices also slipped on the news, hitting one-month lows.

The Qatari prime minister made an unscheduled stop at the G7 meeting in Paris on November 10 to brief the foreign ministers of Britain, France, Germany, Italy, and Saudi Arabia on the Iran talks. France's foreign ministry confirmed the ministers discussed the Iranian crisis and its security and economic repercussions. Qatar's Foreign Ministry described Trump's meeting with the Qatari prime minister as positive and said US-Iran talks are progressing, though a spokesperson declined to comment on an Iranian proposal to reopen the Strait of Hormuz within two days if Tehran's demands are met.

ING analysts said rising expectations of de-escalation have removed part of the geopolitical risk premium priced into oil, with recovering regional oil shipping flows adding further downward pressure. Average US gasoline prices fell to around $3.97 a gallon according to GasBuddy, the first move below $4 in four months. Analysts and market participants cautioned that regional talks remain fragile, shipping risks around the Strait of Hormuz persist, and any renewed tanker attacks could quickly reverse the price relief. OPEC production increases also contributed to the decline. Gulf stock markets opened higher in response to the easing tensions.