During a recent trip to Ireland, President Trump suggested that the ongoing conflict in Iran is likely to end shortly after the upcoming mid-term elections, which he believes will result in a sharp decline in oil prices. On Friday, oil prices had already retreated, with Brent crude settling down 2.8% at $104.61 per barrel and U.S. West Texas Intermediate down 2.4% at $100.05 per barrel.
This price drop followed reports of diplomatic discussions between Iran and Gulf states regarding the Strait of Hormuz, indicating a potential easing of tensions. However, Iranian President Masoud Pezeshkian asserted that Iran would not yield to external pressures, emphasizing the country's resilience against U.S. and Israeli actions.
Additionally, Trump indicated that Iran was likely behind recent drone attacks on Saudi Arabia's East-West crude oil pipeline, which has a capacity of 7 million barrels per day. The attacks prompted Saudi Arabia to shut down the pipeline as a precaution.
Furthermore, Trump mentioned that Yemen's Houthi rebels have expressed a desire to avoid conflict with the U.S., although their recent territorial advances pose risks to critical shipping routes. The situation remains fluid, with potential implications for global oil supply and prices, particularly if the Houthis escalate their actions in the region