Oil drops as US signals restraint on Iran

Oil prices fell on Monday after U.S. President Donald Trump downplayed the likelihood of renewed strikes on Iran, though attacks on ‌ships near the Strait of Hormuz kept supply concerns in focus.

Brent crude dropped by ‌75 cents, or 0.75%, to $97.57 a barrel by 1011 GMT while US West Texas Intermediate lost 38 cents, or ​0.4%, to $90.45.

The Brent benchmark plunged 16% last week for its steepest weekly drop since the start of the COVID-19 pandemic.

Oil is headed for a glut ​again as recovering Middle Eastern oil flows, ​rising production from other countries and weak demand have pushed global supply ‌above consumption, JPMorgan said in a report ​on Friday, estimating a surplus ​of 1.1 million barrels per day in September, widening to 1.4 million bpd in October.