Oil prices took a sharp dive Friday after President Donald Trump delivered a major announcement on Iran, pledging that the United States would hold off on additional military strikes before November’s midterm elections as negotiations to end the war gain momentum.
The development offered a potential turning point in an eight-month conflict that has rattled global energy markets, sent fuel prices soaring and threatened one of the world’s most critical oil shipping routes.
Brent crude futures plunged $1.10, or 1.1%, to $103.18 per barrel Friday afternoon, while U.S. West Texas Intermediate crude slipped 49 cents, or 0.5%, to $91 a barrel.
The sell-off followed Trump’s announcement Thursday that Washington was engaged in “productive discussions” with Tehran, signaling that a diplomatic breakthrough could be on the horizon.
The president also made clear that no American attack on Iran was planned before the Nov. 3 congressional elections, pushing back against reports suggesting another military offensive could be imminent.
The announcement appeared to ease fears of an immediate escalation in the Middle East, where months of fighting have disrupted energy supplies and left international markets scrambling.
Trump’s latest move comes as his administration continues applying economic pressure on Tehran while pursuing a negotiated end to the conflict.
BREAKING: President Trump announces 28 MILLION BARRELS OF OIL just came out of the Hormuz region
THAT IS MASSIVE. ABOVE pre-war
“We took out yesterday 28 million barrels. I think we took out more than we’ve ever taken out at any time, including before the war.”
“We put a blockade up. Nobody gets through. It’s almost like if I gave Italians the blockade. The Italians might even do it better, but you do it very violently.”
Iran’s oil is cut off, and the oil is STILL flowing for everyone else
That’s what strength looks like!
Democrats will try to say this isn’t happening, but Trump has access to data the PUBLIC DOES NOT
— Eric Daugherty (@EricLDaugh) October 9, 2026
Washington recently imposed another round of sanctions targeting individuals, financial networks and 17 vessels accused of transporting Iranian crude oil, petroleum products and petrochemicals.
Meanwhile, Iranian officials have indicated that negotiations over the Strait of Hormuz could be making progress.
Iran’s Tasnim news agency reported Thursday that Foreign Minister Abbas Araqchi said Tehran was reviewing Washington’s response to an Iranian proposal that could reopen the vital waterway within seven days.
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The strait, which handled shipments equivalent to roughly 20% of global oil and fuel supplies before the war, has become a major flashpoint as threats against commercial shipping intensify.
Any agreement restoring regular traffic through the waterway could provide significant relief to international energy markets and American consumers already feeling the financial strain.
RELATED: Oil Prices Make Drastic Move After Trump’s New Statement On Iran
Adding downward pressure on oil prices, China is reportedly preparing to resume refined fuel exports following a temporary suspension during its Golden Week holiday.
Reuters reported Friday that the world’s largest oil importer was moving to restart those shipments, another development that could help ease supply concerns.
PVM Oil Associates analyst Tamas Varga attributed Friday’s price declines to the combination of Trump’s Iran announcement and China’s anticipated return to fuel exports.
However, the energy market remains far from stable.
Brent crude was still headed for a weekly gain after surging 4% Thursday, while U.S. crude was on track for a modest weekly decline.
Meanwhile, Hurricane Isaias is creating another major headache for domestic energy producers as the powerful storm approaches the Gulf Coast.
Operators have already shut down approximately 1.3 million barrels of daily oil production, representing 62.9% of current Gulf output, according to federal figures released Thursday.
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[ H/T Trending Politics ]
