Oil prices have strengthened once more following U.S. President Donald Trump’s statement that the United States does not need a deal with Iran. This remark shifted market sentiment, which had previously been weighed down by rising supplies from the Middle East. Brent crude briefly surpassed US$94 per barrel before settling around US$93.78 per barrel.
Trump’s stance has heightened uncertainty regarding the resolution of the U.S.-Iran conflict. Meanwhile, Tehran has maintained a hardline position, insisting that it will not remove its enriched nuclear material from the country. This situation has brought concerns about potential disruptions to oil supplies and shipments from the Middle East back to the forefront of market attention.
Conversely, regional supply has actually increased. Saudi Arabia reported a 26% surge in oil production in October, while Iraq also ramped up its output to its highest level since the wartime period. This rise in production had previously pressured oil prices by fueling concerns over a potential supply surplus.
However, the continued flow of oil from the Middle East remains contingent upon U.S. military support, including the escorting of oil tankers. Consequently, the sustainability of these supplies depends on how the U.S.-Iran conflict evolves and how long security support for shipping routes can be maintained.