Brent falls below $92 a barrel after Trump says no strike on Iran for now

Crude oil prices stayed soft on Tuesday. Uncertainty over a US military confrontation with Iran persists, but fear appeared to be easing somewhat. The sharp fall of the previous session continued today.

At 01:02 GMT on Tuesday, Brent crude futures were down 24 cents, or 0.23 per cent, at $92.33 a barrel. US West Texas Intermediate (WTI) futures were trading at $86.50 a barrel, down 35 cents, or 0.40 per cent. In the previous session, Brent had dropped 5.85 per cent to its lowest level since August 31.

The market move follows a statement by US President Donald Trump. He said there was no need for military action against Iran for now. This eased, to some extent, concern over a long disruption to oil supplies from the Middle East, and put pressure on prices.

Several countries in the region, including Qatar's prime minister, had made an appeal. Trump then said at the White House on Monday that fresh military strikes on Iran would be put off for the time being. In an interview and in the White House press briefing room, Trump also said he would continue the naval blockade of the Strait of Hormuz for now.

Meanwhile, senior officials of the US and Gulf countries have voiced doubt over the prospect of a possible peace agreement between Washington and Tehran. Mohsen Rezaei, head of Iran's security council, said the US should "stop spreading false reports about hypothetical talks" and that "the time has come to accept Iran's seven conditions, repeatedly stated."

In the recent midterm elections in the US, Trump's party suffered a defeat and the Democratic Party won a historic victory. The balance of power in the US Congress has changed completely after these elections.