Crude prices fell at the start of the trading week after President Donald Trump said that fresh military strikes on Iran were highly unlikely
as long as nuclear and maritime negotiations make progress.
Brent crude for January delivery slipped 64 cents, or 0.64 percent, to $97.67 a barrel on Monday, while U.S. West Texas Intermediate fell 35 cents, or 0.40 percent, to $90.51.
The global benchmark briefly dropped more than $1 a barrel during the session.
Trump ordered an attack on Iran in late February after U.S. ally Israel launched what it called a preemptive strike
on its biggest regional rival, leading to more than eight months of hostilities.
The U.S. president asserted that Iran was withering away financially
and cited inflation reaching 301 percent this year.
Trump also maintained that American forces in the region were fully prepared for further operations, stating, I’ve got three aircraft carriers here,
and adding that they were fully equipped for battle.
In a phone interview with CNN and remarks at a NASA facility in Florida on Friday, Trump also suggested the U.S. role in Iran could amount to being an occupier,
while claiming that the United States controls the Strait of Hormuz and is extracting more oil from the waterway than at any time in its history.
Vice President JD Vance and Secretary of State Marco Rubio have also been involved in the administration’s diplomatic and policy approach.
He warned that Washington had identified 38 bridges in Iran that we can knock down in literally one hour,
though he noted he would prefer to avoid destroying civilian infrastructure that would take 10 years to rebuild.
Diplomatic activity across the Middle East intensified following the U.S. midterm elections, which saw Trump’s Republicans lose their majorities in Congress.
On Thursday, Iran sent a nuclear proposal to the U.S. through Qatar.
Iranian Foreign Minister Abbas Araghchi spoke with counterparts from Saudi Arabia, the United Arab Emirates, Oman, Pakistan, Kuwait, Jordan, Turkey, Cyprus, and Qatar.
Araghchi responded to potential U.S. actions by pointing to the Republican midterm defeat, stating, American voters have made their choice.
Simultaneously, maritime security and regional tensions remain volatile.
Maritime analytics firm Windward tracked vessels taking unusual routes over cable corridors off Oman, while Iranian Revolutionary Guard officials, including spokesman Hossein Mohebbi and political deputy Yadollah Javani, warned that underwater communication cables could be targeted in retaliation for attacks on Iranian infrastructure.
Earlier coverage: Oil Prices Plunge on Hopes Midterms Will End Iran Conflict