Oil falls as Trump downplays prospect of escalation with Iran

Oil prices fell after Donald Trump said he would hold off on new military strikes against Iran for now, easing fears of a prolonged Middle East supply disruption. The decline reflects a more conciliatory US tone, although risks to shipping through the Strait of Hormuz remain.

By 0246 GMT, Brent crude was down 70 cents, or 0.75 per cent, at $91.88 a barrel, while US WTI fell 78 cents, or 0.90 per cent, to $86.07. Brent had dropped 5.85 per cent the previous day and is about 22 per cent below its October 30 high of $118. Trump said the US would maintain its naval blockade in the Strait, where attacks on shipping continue; meanwhile, OPEC output rose in October, led by Saudi Arabia, Kuwait and Iraq.