Oil Prices Fall as Trump Signals No Iran Deal Needed, Easing Supply Concerns

Oil prices slipped on Tuesday, extending losses from the previous session, after U.S. President Donald Trump said military action against Iran was not necessary “at this point,” alleviating fears of further disruptions to Middle‑East supplies.

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Brent and WTI‑YTD

In a Truth Social post, Trump declared, “We don’t need a deal with Iran. Those days have long since passed. We’ve got their money, hundreds of billions of dollars, and we’ve got their Strait!”

Wednesday’s decline follows a broader sell‑off triggered by Trump’s comments after the U.S. midterm elections, which muted speculation of additional strikes on Iran. West Texas Intermediate (WTI) is down 16% in November, while Brent crude has fallen about 20%.

Trump said on Sunday that fresh attacks were highly unlikely as negotiations to end the conflict progressed, despite both nations reporting incidents near the Strait of Hormuz. He added that further military action did not appear necessary “at this point,” easing concerns about prolonged supply disruptions.

John Kilduff, a partner at Again Capital, cautioned that markets may have over‑reacted. “The market may have gotten ahead of itself on pricing in a cessation of hostilities,” Kilduff told CNBC. He warned that renewed doubts about a deal would push the security premium in oil prices higher, noting that Trump’s claim of U.S. control over the Strait could provoke further Iranian attacks on shipping.

Andy Lipow, president of Lipow Oil Associates, added, “The President may be thinking that given enough time, the economic blockade of Iran will force them to either negotiate with the USA or result in a regime change as the Iranian economy collapses. The Iranians might have different ideas and continue to attack Middle East infrastructure that results in higher prices and forces the President to the negotiating table.”

“In any event, it does not seem to me that either side’s negotiating position has changed. Iran wants the blockade to end, sanctions to be lifted and a ceasefire including Lebanon to be declared. The USA wants Iran to get rid of its entire nuclear stockpile and allow free transit through the Strait of Hormuz,” he said.

—CNBC’s Pippa Stevens contributed to the report.

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