European Investor
10 Nov 2026, 09:13
Brent Crude Falls Nearly 3% as U.S.-Iran Escalation Fears Ease Further
Brent crude futures fell nearly 3% on Tuesday, trading around $89.86 a barrel, as markets continued to unwind the geopolitical risk premium tied to the conflict with Iran.
The decline followed U.S. President Donald Trump’s decision to hold off on additional strikes against Iran, easing fears of a prolonged escalation and further disruption to Middle East oil supplies. Reuters reported that Trump adopted a more conciliatory stance after appeals from regional leaders, while maintaining the U.S. naval blockade in the Strait of Hormuz. (Reuters)
Supply concerns have also eased as OPEC production increased in October. A Reuters survey showed OPEC crude output rose by 1.38 million barrels per day to 22.87 million bpd, reaching about 90% of its pre-war February level, with Saudi Arabia, Kuwait and Iraq leading the increases.(Reuters)
Geopolitical risks have not disappeared, however. Attacks on shipping are continuing and that uncertainty around the Strait of Hormuz remains elevated.
The latest 2.9% decline therefore appears primarily driven by continued de-escalation expectations and improving supply conditions, extending the sharp retreat from Brent’s October 30 high near $118.
Brent crude futures fell nearly 3% on Tuesday, trading around $89.86 a barrel, as markets continued to unwind the geopolitical risk premium tied to the conflict with Iran.
The decline followed U.S. President Donald Trump’s decision to hold off on additional strikes against Iran, easing fears of a prolonged escalation and further disruption to Middle East oil supplies. Reuters reported that Trump adopted a more conciliatory stance after appeals from regional leaders, while maintaining the U.S. naval blockade in the Strait of Hormuz. (Reuters)
Supply concerns have also eased as OPEC production increased in October. A Reuters survey showed OPEC crude output rose by 1.38 million barrels per day to 22.87 million bpd, reaching about 90% of its pre-war February level, with Saudi Arabia, Kuwait and Iraq leading the increases.(Reuters)
Geopolitical risks have not disappeared, however. Attacks on shipping are continuing and that uncertainty around the Strait of Hormuz remains elevated.
The latest 2.9% decline therefore appears primarily driven by continued de-escalation expectations and improving supply conditions, extending the sharp retreat from Brent’s October 30 high near $118.
