U.S. Oil Falls Below $85 After Trump Says Iran Strikes Are Not Needed

U.S. crude futures fell below $85 a barrel for the first time since Aug. 31 after President Trump said additional military strikes on Iran are not currently necessary, easing concern about potential supply disruptions in the Middle East.

West Texas Intermediate (WTI) crude futures were down about 1% to 2% intraday. Concerns over Middle East supply disruptions had contributed a geopolitical risk premium to oil prices, and easing concern led market participants to reassess the chance of a price spike.

Contract pricing put the odds of crude reaching a new all-time high by Dec. 31 at 5.5%. The same outcome carried 16.5% odds by April 1, 2027. Those readings reflect market expectations for a possible record, not a guaranteed outcome.

Market participants were watching for further Middle East developments and changes in U.S. policy toward Iran that could affect oil supply expectations. Statements from the Organization of the Petroleum Exporting Countries (OPEC) secretary general and Saudi Arabia’s energy minister could also provide clues to the market outlook.