Crude Oil Dips on Eased Iran Strike Fears
Brent crude prices fell over $1 as U.S. President Trump indicated fresh strikes on Iran are unlikely if negotiations progress, though Strait of Hormuz concerns linger.
The Cliff News | 9 November 2026
Oil prices experienced a downturn on Monday, with Brent crude briefly dropping by more than $1 a barrel. This decline follows remarks from U.S. President Donald Trump suggesting that further American strikes on Iran are "highly unlikely" should negotiations between the two nations show positive movement.
Brent crude futures saw a decrease of 52 cents, or 0.53%, settling at $97.80 a barrel. U.S. West Texas Intermediate (WTI) crude futures also slipped, losing 15 cents, or 0.17%, to trade at $90.68 a barrel. The market reacted to the indication that the U.S. might avoid escalating military action, contingent on Tehran agreeing to what Trump described as a robust deal.
Trump Signals Easing of Military Action
President Trump stated in a phone interview with CNN that the necessity for renewed military intervention was "highly unlikely" if Iran made tangible progress in negotiations concerning its nuclear program and the reopening of the Strait of Hormuz. He emphasized that this would depend on Iran signing a "very strong agreement."
However, despite ruling out fresh strikes, Trump issued a stern warning, revealing that Washington had identified 38 Iranian bridges that could be destroyed within an hour if further military action became unavoidable. "We have 38 bridges in our site that we can knock down in literally one hour. They’ll all be down," Trump told CNN.
Strait of Hormuz Disruptions Persist
The U.S. president's comments come amidst ongoing disruptions to crude oil supplies flowing through the critical Strait of Hormuz, a situation that has now persisted for over eight months. These disruptions have had a significant impact on refinery operations across major economies in Asia and the Middle East.
According to data from the U.S. Energy Information Administration (EIA), global refinery activity experienced a sharp contraction in the second quarter of 2026, following the outbreak of conflict in the Middle East. Energy intelligence firm Kpler reported that global refinery inputs dropped by 4.8 million barrels per day (b/d), a 6% decrease, in the April-June period compared to the preceding quarter.
Impact on Global Refineries
While refinery inputs showed some recovery, rising by 1.8 million b/d in the third quarter as refiners adjusted to shifting trade flows and explored alternative supply routes, countries heavily reliant on crude passing through the Strait of Hormuz remained particularly affected. China recorded the most substantial decline, with refinery inputs falling by 2.1 million b/d in the second quarter and an additional 0.8 million b/d in the third.
India, South Korea, and Japan collectively saw a drop of over 1 million b/d in crude oil inputs during the second quarter. Their combined inputs later recovered by 0.8 million b/d in the subsequent quarter, indicating a partial normalization of supply chains.