Brent crude eased to around $103 a barrel on Friday after President Donald Trump pledged to hold off attacking Iran until after November's US midterm elections. China's resumption of fuel exports added to the pullback, even as Hurricane Isaias forced US Gulf producers to shut in output.
Brent crude dropped about 1% to $103 a barrel on Friday, retreating after Trump said overnight that Washington would pause its war on Iran until after the midterms. The move reverses part of a sharp rally in crude oil the previous day, when fears of a wider conflict pushed prices higher.
In a Truth Social post, Trump said Washington was having productive discussions with Iran, which he described as being in a weak economic and military position. He also claimed oil was moving through the Strait of Hormuz in record volumes, 22 million barrels in a single night, with none of it tied to Iran — a figure that could not be independently verified.
Trump pledges to hold fire until the midterms
According to Trump's Truth Social post: "we will not be attacking Iran at any time prior to the Midterm Elections", which take place on November 3rd. The Strait of Hormuz, through which roughly a fifth of the world's oil and liquefied natural gas passed before the war, was all but closed after the US and Israel struck Iran in late February.
The pause comes after Brent posted its biggest daily jump in two weeks, rising more than 4% to $104.28 a barrel. That spike was driven by fears of further escalation, including Houthi attacks on targets in Saudi Arabia and new attacks on ships in the Strait of Hormuz. The Atlantic also reported that the White House had asked the Pentagon to develop strike options that could be used before the midterms. Deutsche Bank analysts said that ran counter to assumptions that there wouldn't be an escalation before the midterms.
China's exports and a Gulf hurricane add to the picture
Prices also eased on news that China is set to resume fuel exports after a pause during the country's Golden Week holiday, a move expected to boost tight global supplies of diesel, gas and jet fuel. That offset concerns over supply from the US Gulf coast, where Hurricane Isaias — the first hurricane of the 2026 Atlantic season — prompted states of emergency in Florida, Alabama and Georgia.
Gulf of Mexico producers halted operations representing around 1.3 million barrels per day of oil output and 1.1 billion cubic feet per day of natural gas. Personnel had been evacuated from 121 of the Gulf's 371 manned production platforms, according to Reuters, citing the Marine Minerals Administration.
Source: Business | The Guardian
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