Oil Prices Fall 2% to Two-Month Low on Iran Hopes
Oil prices slid about 2% to fresh two-month lows on Tuesday after US officials played down the need for further military action against Iran, easing fears of more disruption to Middle East supplies.
Brent futures fell $1.93, or 2.1%, to $90.64 a barrel by 1528 GMT. US West Texas Intermediate crude fell $1.44, or 1.7%, to $85.41. Both benchmarks were on track for their lowest close since August 28. On Monday, both contracts had already closed at their lowest since August 31. Reuters reported the figures from New York.
The fall came as Washington signalled that economic pressure, rather than new strikes, would carry its campaign against Tehran for now.
Rubio says the blockade is working
US Secretary of State Marco Rubio told Group of Seven allies in Paris on Tuesday that American sanctions and the naval blockade were working so well that President Donald Trump did not need to order major combat operations against Iran.
Rubio made the remarks during a meeting of G7 foreign ministers in the French capital. He pushed back against the idea that holding off from strikes amounted to a stalemate.
“We don’t need to conduct military strikes if we’re achieving the same objective through economic means and economic pressure. That’s not stalemate,” Rubio said. “Never has Iran ever faced the inability to sell energy in the global market like they are today.”
He added that the economic pain being inflicted on Iran was extraordinary and growing every day, and that regional allies had confirmed the assessment to Trump.
On Monday, Trump said he planned to hold off on new military strikes against Iran for the time being, after appeals from countries in the region. Those appeals included talks at the White House with the prime minister of Qatar.
Gulf states prefer the blockade, Trump says
The picture is not one-sided. In a Truth Social post on Monday, Trump wrote that members of the Gulf Cooperation Council “would prefer the status quo, in other words, a continuation of the Greatest Naval Blockade in History, and the new Operation Iron Gate, therefore, land and sea”.
At the same time, Trump said he was “seeing positive momentum toward an end to this Conflict”. He added that once the war is over, the whole world will be “safer and more secure”, but warned that if it becomes necessary to go back to fighting, the United States is “locked and loaded”.
Iran’s top security official, Mohsen Rezaei, said there were currently no negotiations taking place between Tehran and Washington. Iran has insisted the US must meet seven conditions set out in a June interim agreement before the Strait of Hormuz can reopen and talks resume. Rezaei said Iran had asked Washington for a “clear and explicit” response to those conditions and was still waiting.
What falling oil prices mean for Pakistan
For Pakistan, which imports nearly all of its crude oil, a lower Brent price is welcome news. It eases the import bill, takes pressure off foreign exchange reserves, and leaves room for relief at the pump.
That relief is already showing. The government cut the petrol price by Rs8 a litre to Rs338 on November 10, with high-speed diesel down Rs7 to Rs371. It was the sixth straight daily fall in petrol prices, a run driven in part by softer global crude.
The link between world prices and local pump prices is not instant, and taxes still decide much of what motorists pay. The petroleum levy alone brought in Rs220 billion in two months, and the government is in talks with Jamaat-e-Islami over relief on the levy. But every dollar off Brent trims the cost of each cargo Pakistan buys.
Energy security remains a longer-term worry. Pakistan has asked Saudi Arabia for a 15-year, $6.7 billion concessional oil facility to replace its annual deferred-payment arrangement, and the finance ministry has pointed to a fiscal deficit at a 22-year low as proof that the economy can absorb external shocks better than before. Cheaper oil helps that case, but only while the Iran standoff stays calm.
Prices at a glance
| Benchmark | Price (1528 GMT, Nov 10) | Daily change |
|---|---|---|
| Brent crude | $90.64 a barrel | Down $1.93 (2.1%) |
| WTI crude | $85.41 a barrel | Down $1.44 (1.7%) |
Both benchmarks are at their lowest since August 28. Whether they stay there depends on the same question that moved them on Tuesday: whether the pause in strikes holds, and whether the blockade keeps Iranian oil off the market without a new round of fighting.
Frequently asked questions
Why did oil prices fall on Tuesday?
Prices fell because US officials played down the need for new military action against Iran. Rubio told G7 allies that sanctions and the naval blockade were achieving Washington’s aims, which eased fears of further supply disruption.
How low did Brent crude go?
Brent fell $1.93, or 2.1%, to $90.64 a barrel by 1528 GMT on Tuesday. WTI fell $1.44, or 1.7%, to $85.41. Both were heading for their lowest close since August 28.
What did Rubio say about the Iran blockade?
Rubio said the economic pain on Iran was extraordinary and growing every day, and that Trump did not need major combat operations while sanctions and the blockade were working. He said Iran had never before faced such an inability to sell energy on the global market.
Will petrol get cheaper in Pakistan?
Cheaper Brent helps, and petrol has already fallen for six straight days, most recently by Rs8 a litre to Rs338 on November 10. But pump prices also depend on taxes, the petroleum levy and the rupee, so world prices alone do not set the local rate.
What could push oil prices back up?
A return to strikes, any closure of the Strait of Hormuz, or a breakdown in the pause Trump announced on Monday would revive supply fears. Iran says there are no talks underway with Washington, so the standoff is far from settled.
