Oil Prices Fall After Trump Rules Out Iran Attack Before Midterms

TLDR

• Oil prices dropped after President Trump said the US would not strike Iran before the midterm elections
• Brent crude fell to around $103.50 a barrel, while West Texas Intermediate slipped near $90.86
• World stocks edged higher and US futures pointed to gains on Wall Street
• Investors are watching heavy borrowing by tech companies tied to AI spending
• Gold rose more than 1% to about $4,191 an ounce as the dollar softened slightly

---

Oil prices eased on Friday after President Donald Trump said the United States would not attack Iran before next month’s midterm elections. The comment calmed fears about supply disruptions in the Middle East.

BREAKING: President Trump says the US will not attack Iran “at any time prior” to the US Midterm elections on November 3rd. pic.twitter.com/tiGcE5Qu6V

— The Kobeissi Letter (@KobeissiLetter) October 8, 2026

Brent crude futures slipped about 0.8% to $103.45 a barrel. West Texas Intermediate crude fell roughly 0.7% to $90.86 a barrel.

The drop followed a sharp rise on Thursday, when oil jumped nearly 4% on reports that an attack on Iran was being considered. Trump’s statement reversed some of that move.

He also said discussions with Iran had been productive. Iranian media reported the country is reviewing a US response tied to reopening the Strait of Hormuz.

Supply Risks Still Linger

Even with prices lower, several factors kept a floor under the market. Iranian attacks on tankers in the Strait of Hormuz hit their highest weekly level since the war with the US began in February.

That spike had slowed shipping through the strait. Continued fighting between Saudi Arabia and Yemen’s Houthi forces also raised concerns about further disruptions, especially in the Red Sea.

A hurricane in the Gulf of Mexico added another layer of uncertainty. Storm Isaias was expected to make landfall over the weekend.

Energy companies including BP, Chevron, and Shell began evacuating offshore facilities ahead of the storm. US regulators said more than 1.28 million barrels of daily oil production, about 63% of Gulf coast output, had been shut in as a precaution.

More than 120 offshore platforms were evacuated. Over half of daily natural gas production in the region was also halted.

Earlier in the week, oil had already dipped on news that Saudi Arabia’s oil exports were recovering quickly. Shipping flows through the Strait of Hormuz briefly moved above levels seen before the war.

Stocks Rise, Bond Yields Stay High

World stock markets moved higher on Friday following the drop in oil prices. European shares opened up, and US stock futures pointed toward gains later in the day.

In Asia, a broad index of shares outside Japan rose half a percent. Japan’s Nikkei index stayed roughly flat.

Chip stocks remained under watch after a rough day Thursday tied to concerns about OpenAI’s finances. One report said the company’s yearly revenue pace was close to 50 billion dollars, below earlier expectations.

Another report suggested the company could reach or pass 70 billion dollars by the end of the year. The mixed signals added to investor caution around artificial intelligence spending.

Government bond yields in the US ticked higher Friday after falling the day before. A sale of 30-year government debt had drawn strong demand on Thursday.

In Europe, government borrowing costs eased after a steep selloff tied to inflation worries and concerns over France’s budget situation. The gap between French and German borrowing costs narrowed slightly over the week.

Large companies including SpaceX, Broadcom, and Oracle are expected to raise billions of dollars to fund AI chip purchases. One Australian data center operator backed by Nvidia pulled its planned stock listing, citing market swings, and said it would seek private funding instead.

The US dollar held steady, with the euro falling for a fifth straight week. Gold prices rose more than one percent to about $4,191 an ounce.