Oil prices fall to lowest since August after Trump downplays Iran war

Brent crude hits recent low

Brent crude futures fell 24 cents to settle at $92.33 a barrel by 0102 GMT. US West Texas Intermediate prices dropped 35 cents to reach $86.50 per barrel. These levels represent the lowest since late August after President Trump suggested attacks on shipping have not escalated enough to force a fresh risk premium into the market.

Trump halts new strikes temporarily

After receiving appeals from regional nations, the US president intends to delay any new military attacks on Iran for now. He plans to maintain a naval blockade within the Strait of Hormuz while staying ready for any possible reason. Mohsen Rezaei, who leads Iran's security council, said the United States must cease producing false reports regarding nonexistent discussions and warned that seven demands should be accepted now.

Markets react with relief

Europe's benchmark Stoxx 600 index gained 0.9 percent to 662.54 points while airline stocks rose amid hopes for lower fuel costs. The FTSE 100 climbed 45 points to 10,828 with BP and Shell down 1.7 percent and 1.5 percent respectively. Analysts note that global markets are extending their recovery after Wall Street recorded a strong session supported by the sharp decline in oil prices.