Global crude oil prices on Monday remained stable after US President Donald Trump indicated that further military strikes against Iran were unlikely as negotiations to end the conflict progressed.
Brent crude was trading with marginal decline at $98.28 per barrel, while West Texas Intermediate (WTI) was slightly up at $91.24.
On Friday, traders were considering the possibility of renewed US military action. Brent had plunged 17% during the previous week, its steepest weekly percentage decline since the beginning of the Covid pandemic, according to LSEG data cited in a report by Reuters.
As per a report by CNN, Trump suggested that additional strikes would probably not be necessary if negotiations produced a sufficiently strong agreement.
His remarks came despite reports from the US and Iran of attacks involving vessels in or near the Strait of Hormuz.
Trump had previously indicated that military operations could resume following the US midterm elections, while Iran warned of retaliation against American and Israeli targets.
It remained uncertain, however, that if his latest comments reflect a lasting shift in Washington's approach or a temporary adjustment.
Beyond geopolitical developments, concerns about rising global crude supplies added pressure on prices.
JPMorgan said recovering Middle Eastern oil flows, increased production elsewhere and subdued demand were pushing supply above consumption.
The bank estimated a global surplus of 1.1 million barrels per day in September, increasing to 1.4 million barrels per day in October.
Meanwhile, Iraqi Foreign Minister Fuad Hussein said Baghdad had reached an understanding with Washington to facilitate Iraqi crude exports through the Strait of Hormuz.
Speaking to Al Jazeera on Sunday, Hussein said the arrangement involved a shipping route near Oman.
The developments have shifted market attention towards recovering supply flows and the outlook for global oil demand.
