Brent crude falls almost 5% on Monday to its lowest since early September, as US President Donald Trump played down the chances of fresh strikes on Iran. The figures come from Reuters reporting carried by Tribune.
Brent futures were down $4.57, or 4.65%, at $93.75 a barrel by 1704 GMT, after touching a session low of $92.80 during the day. US West Texas Intermediate futures fell $3.19, or 3.51%, to $87.64 a barrel.
Prices fell even though attacks on shipping continued near the Strait of Hormuz, which carries about a fifth of the world’s seaborne oil.
Brent crude falls after a brutal week for oil
Monday’s drop added to a sharp slide the week before, when the Brent benchmark plunged by 16% and touched a two-month low of $93.22 — its steepest weekly drop since the start of the Covid-19 pandemic.
Feature Pakistan has tracked the slide all month. Brent stood at $108.96 on the morning of 2 November and had fallen to $104.96 later the same day, and it had fallen for a fourth day by Thursday. Monday’s close at $93.75 means Brent has lost roughly $15 a barrel in a week.
Traders are now pricing in diplomacy rather than war. “This seems to have encouraged sellers on the prospects for peace even while the actual fighting is not slowing down,” TACenergy analysts said in a note.
What Trump said
On Sunday, Trump said fresh attacks on Iran were highly unlikely as long as talks to end the conflict progressed and produced a strong agreement.
The remarks marked a change of tone. Last week, Trump had hinted attacks on Iran might resume, and Tehran vowed to respond by striking US and Israeli targets. But there has been no sign of a large-scale US military operation since then.
A senior Iranian security official told state media Tehran has no plans to negotiate unless Washington takes practical steps to meet seven conditions set out in a June interim agreement. Trump was also due to meet Qatar’s prime minister, whose country has acted as mediator, though senior US and Gulf officials doubted a deal was imminent.
Fighting continues near Hormuz
The market calm sits uneasily with events at sea. Both countries reported shipping hit in or near the strait, and Iran said three more oil tankers caught fire there on Sunday after striking naval mines.
Iraq has reached understandings with the US to let Iraqi oil exports pass through the strait via a shipping lane near Oman, Foreign Minister Fuad Hussein told Al Jazeera on Sunday.
“Crude futures are under selling pressure once again as oil volumes continue strong through the Strait of Hormuz,” said Dennis Kissler, Senior Vice President of Trading at BOK Financial.
What it means for Pakistan
For Pakistan, which imports most of its crude oil and fuel, lower Brent prices ease the import bill and take pressure off the fortnightly petrol and diesel review. Petrol was cut to Rs369.06 a litre for 4 November, and cheaper crude gives the government room to hold prices down at the next review.
The Hormuz route matters directly to Pakistan. Oil shipping costs hit $254,000 a day amid attacks near the strait last month, and any disruption there feeds straight into freight and fuel costs at home.
Pakistan has also asked Saudi Arabia for a 15-year concessional oil facility to replace its annual deferred-payment line.
The risk has not gone away: if talks stall, prices could jump back just as fast. For now, the market is betting on diplomacy.
Frequently asked questions
How far did oil prices fall on Monday?
Brent fell $4.57, or 4.65%, to $93.75 a barrel, after touching a session low of $92.80. WTI fell $3.19, or 3.51%, to $87.64.
Why did prices fall?
Donald Trump said fresh US strikes on Iran were highly unlikely while talks continued. Traders took that as a sign of de-escalation and sold oil.
How much has Brent fallen in a week?
Brent plunged 16% last week, its steepest weekly drop since the Covid-19 pandemic began. It has fallen from about $109 on 2 November to $93.75 on 9 November.
Is shipping through Hormuz still under attack?
Yes. Both the US and Iran reported shipping hit in or near the strait, and Iran said three more tankers caught fire on Sunday after striking naval mines. Oil volumes through the strait have held up so far.
What does cheaper oil mean for Pakistan?
Pakistan imports most of its oil, so lower Brent prices ease the import bill and reduce pressure on petrol and diesel prices; petrol was cut to Rs369.06 a litre for 4 November.
