Brent crude dips below $90 for first time since August on Iran hopes

International oil benchmark Brent crude briefly 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.

Brent, the price gauge for around 80% of global crude, settled down 1.17% at $91.49 a barrel. At its session low, the international benchmark slid to $89.16. U.S. WTI crude fell 0.93% to settle at $86.04 a barrel.

Trump said on Monday that the war with Iran could end “fairly soon” and that Tehran was “talking very politely” with Washington.

“We’re seeing momentum toward the end of this conflict. I think it’s going to be ending fairly soon,” he said at the White House following a meeting with Qatar’s prime minister, Sheikh Mohammed bin Abdulrahman Al Thani. “Iran militarily is effectively over,” Trump told reporters.

Trump also said in a Truth Social post that Qatar, Saudi Arabia, the UAE, Bahrain and Kuwait would “prefer the status quo,” namely maintaining a naval blockade against Iran and preventing the country from using ground routes to transport advanced weapons and other materials.

Crude oil prices have been highly volatile this year, proving sensitive to any perceived shift in direction in the U.S. and Israel’s war with Iran.

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 retreated in June and July before climbing back to those levels as the conflict increasingly appeared entrenched.

Crude oil flows through the key Strait of Hormuz waterway have largely recovered. But consumers have suffered from resulting volatility in energy markets, as wider global conflicts — including Houthi attacks on Saudi Arabia and the Russia-Ukraine war — exacerbate a shortage of refining capacity, sending prices of diesel, gasoline and jet fuel soaring.

Trump and Vice President JD Vance have both acknowledged that public disapproval of the Iran war and high energy prices played a role in the Republicans’ punishing result in the U.S. midterms last week.

While officials on both sides have continued to trade hostile words, particularly as they debate control of the Strait of Hormuz, the U.S. had largely held back on military strikes since September, with Trump saying in early October they would not resume until after the midterms.

The U.S. carried out what Trump called “minor strikes” on Iran after reports that two missiles struck Qeshm Island, located near the Strait of Hormuz off the country’s southern coast.

Uncertain negotiations

Analysts were divided on how the U.S. administration would approach the Iran conflict after the Democrats’ resounding midterm victories, with some viewing escalation as a strong possibility despite the initial market reaction suggesting hopes of a deal.

“The market has continued to unwind some of the geopolitical risk…