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Market news · Nov 10, 9:04 AM ET

Brent crude drops below $90 a barrel, lowest since August, after Trump signals Iran war is nearing its end

Brent crude fell below $90 a barrel on Tuesday for the first time since August after President Donald Trump said the Iran conflict was effectively over, according to CNBC and other outlets. The drop is a relief for inflation-sensitive investors and weighs on US energy producers, while equities and Treasuries rallied on expectations of lower inflation pressure.

By Flash Finance US desk (written with AI assistance) · Editor: Kokila

Oil benchmarks slid on Tuesday as traders reacted to comments from the White House suggesting the military confrontation with Iran is winding down. International oil benchmark Brent Crude fell below $90 a barrel for the first time since August on Tuesday as comments from U.S. President Donald Trump fueled hopes for an end to Washington's nearly nine-month conflict with Iran.

What moved prices

Brent had already dropped sharply the day before. Brent crude extended Monday's near 6 per cent plunge after Mr Trump's remarks that he would delay launching more military strikes against Iran following appeals from regional leaders, according to Axel Rudolph, chief technical analyst at IG, as quoted by The National. Trump's latest remarks were less definitive than the headline phrasing suggests. Oil prices fell on Tuesday after Donald Trump said the Iran war could end "fairly soon."

In early trading, the front-month contract was still moving. Brent, the price gauge for around 80% of global crude, was 2.65% lower at $90.14 at 5:33 a.m. ET after contracts with January expiry dipped below $90 earlier in the morning. Traders also pointed to signs of diplomacy. Reports that Iran may be softening its position on control of the Strait of Hormuz have also reduced concerns over a prolonged disruption to one of the world's most important oil transit routes.

Context for the price decline

The current level is still far below the spring peak. Brent Crude started the year around $60 a barrel before soaring as high as $130 a barrel as military strikes escalated in March and April. Prices have stayed elevated for months because of supply concerns in the Middle East, and those concerns have not disappeared. One energy consultant said that, despite market moves, he still did not see any prospects of a peace deal between the U.S. and Iran. That view came from Fereidun Fesharaki, chairman of energy consultancy FGE, speaking to CNBC.

Why it matters for US investors

Lower crude prices feed through to the broader economy, and markets reacted accordingly. One report said the drop in oil prices presaged a rally in both equities and government bonds, as traders pared back bets on the inflationary impact of the war.

For US investors, the most direct exposure is in energy. Integrated oil majors, exploration and production companies, and oilfield service firms generally track crude prices closely, so a sustained decline would be a headwind to their revenue expectations. Refiners can be affected differently, since their margins depend on product prices as well as crude costs. Fuel-intensive sectors such as airlines and trucking could see some relief if the decline holds.

  • Inflation expectations: traders reduced bets that the conflict would push prices higher.
  • Equities and bonds: both rallied as the oil drop eased inflation concerns.

Caveats

Not all parts of the energy chain have eased. One strategist said crude oil flows have almost returned to pre-war levels, while LNG and refined product supplies remain constrained, keeping prices elevated, particularly for diesel. Analysts also said the market would watch for further signals from Washington and Tehran on any diplomatic breakthrough. The timing of any fuel price relief at the pump, and whether the decline holds, remains unclear.

Brent crudeWTI crudeDonald TrumpIranenergy stocksoil markets

Sources

Written with AI assistance on Nov 10, 9:04 AM ET from the reports listed under Sources, and reviewed by our editor after publication. Before it was published, every figure was checked against those reports, and passages with figures that could not be found there were left out. It can still contain mistakes: read the sources before acting on anything. How we review. Not investment advice.