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High Impact

TRUMP SAYS OIL PRICES ARE “DROPPING LIKE A ROCK,” DOWN ALMOST $10 A BARREL, “A RECORD,” BECAUSE PEOPLE FEEL THERE WILL NOT BE A WAR WITH IRAN, ADDING THAT IRAN WANTS A SETTLEMENT AS SOON AS POSSIBLE AND “IT COULD HAPPEN” - TRUTH SOCIAL

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🏷Markets
📰via FS
✍️Edited by Luís Barata

Former President Trump stated that oil prices are "dropping like a rock," claiming a decline of nearly $10 per barrel that he characterized as a record, and attributed the move to market expectations that a war with Iran will not occur. He further asserted that Iran seeks a settlement as soon as possible and that such an agreement "could happen." The transmission mechanism here runs through geopolitical risk premia: crude benchmarks typically embed a supply-disruption premium when Gulf tensions rise, so a perceived reduction in war probability compresses that premium quickly and can produce sharp single-session moves. Crude oil futures, particularly Brent and WTI, are the most directly exposed, while energy equities, tanker and shipping rates, and refining margins are secondary channels, and Gulf currencies and sovereign spreads can also reprice on changes in regional risk. Traders should watch the next OPEC+ production communication and the weekly EIA inventory report for confirmation of whether the price decline reflects a durable shift in supply expectations or a fading of headline-driven risk premium.

Source: Originally reported by FS at November 02, 2026. Summary and market context by Trading News Terminal editorial.

About OIL

Crude oil (WTI/Brent) reacts in real time to OPEC+ production decisions, EIA weekly inventory reports, geopolitical supply disruptions (Middle East, Russia, Venezuela) and US Strategic Petroleum Reserve announcements. A 5% intraday move on breaking news is not unusual.

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