President Donald Trump said on Friday that Washington would not launch an attack on Iran before the November 3 U.S. midterm elections, calming oil‑market fears. Oil prices fell 0.7% on Friday, with Brent at $103.53 a barrel and WTI at $90.97, a decline tied to the president’s remarks.
The comment follows the U.S. imposition of fresh sanctions on 17 vessels linked to Iranian oil transport and on 12 individuals, a move that has kept the Strait of Hormuz a flashpoint. Iran’s foreign minister Abbas Araqchi said Tehran was reviewing Washington’s response to a proposal to reopen the strait within a week, hinting at a diplomatic thaw.
Meanwhile, Hurricane Isaias forced Gulf Coast producers to shut in 1.3 million barrels per day, cutting 62.9% of current production in the region. Pioneer Energy’s CEO Maria Lopez said the shutdown has hit the company’s quarterly revenue by $30 million, while a 28‑year‑old refinery worker in Louisiana, Jamal Carter, fears job losses.
Despite Friday’s drop, Brent is on track for a weekly gain after closing 4% higher on Thursday amid heightened attacks on vessels. WTI remains set for a slight weekly decline, a sign that U.S. production cuts from the hurricane are weighing on the market.
Market watchers now eye the next trading session, expecting volatility to rise if the hurricane worsens or if Iran moves to close the strait. The U.S. will also weigh the impact of the upcoming election on foreign policy decisions.