Oil hits August low as Trump downplays Iran strikes

Brent crude fell to its lowest level since 31 August on Tuesday, 10 November, while European and London shares rose after US President Donald Trump said further military action against Iran did not seem necessary at that point. The Guardian reported the Tuesday morning market moves after Trump’s White House remarks.

• Brent fell nearly 3% to $89.66, following a nearly 6% drop on Monday.
• The Stoxx 600 rose 0.9% to 662.54; London’s FTSE 100 gained 45 points to 10,828.
• Airline shares rose as BP and Shell fell, while the US blockade of Iran remained in place, according to separate reporting by the Associated Press.

Oil falls as European shares climb

The Guardian said Brent, the global oil benchmark, was down nearly 3% to $89.66 on Tuesday morning. Monday’s nearly 6% decline had come amid signs that the conflict might be nearing an end. The Stoxx 600 gained 0.9% to 662.54, close to the record high it reached in early August amid hopes for a Middle East peace deal. In London, the FTSE 100 rose 45 points, or 0.4%, to 10,828.

At a White House press conference, Trump said Israel and Gulf allies were well protected and escalation was not needed. “At this point, taking the military action doesn’t seem to be a very necessary thing – but we’re locked and loaded, ready to go for any reason,” he told reporters. Daniela Hathorn, a senior market analyst at Capital.com, said markets were extending their recovery, supported by lower oil prices and renewed buying in technology stocks.

What it means for fuel costs and the Iran conflict

The Associated Press reported that the United States was maintaining a naval blockade and that Trump gave no indication of withdrawing the thousands of US troops deployed to waters off Iran. Iran continued to demand concessions before nuclear talks, including an end to the blockade, sanctions relief, the unfreezing of its assets and an end to regional hostilities. The military and diplomatic situation therefore remained unsettled as markets reacted to Trump’s remarks.

UK drivers may see a delayed effect from lower wholesale prices. The Guardian reported that the AA put average petrol at 169.7p a litre, down 5p since early October, and said wholesale-market indications pointed to a possible further 10p reduction. That further reduction was an expectation, not a confirmed change at petrol stations.

Hathorn said the Federal Reserve would want more evidence of slowing inflation. She warned that persistent price pressures and borrowing-cost concerns could bring volatility back into focus. The market moves followed Trump’s comments, but the reporting does not establish that his remarks alone caused them.