Oil sinks below $90 a barrel after Trump says Iran war is 'effectively over'

Updated: 04:43 EST, 10 November 2026 The price of oil fell below $90 a barrel for the first time since the summer today after Donald Trump said the war with Iran is 'effectively over'.Brent crude fell another 3 per cent to $89.66 on Tuesday after dropping nearly 6 per cent on Monday after the US president said he was 'highly unlikely' to resume missile strikes on the Islamic Republic - at least for now.Speaking after a meeting with Qatar prime minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, a key mediator in diplomatic efforts to end the war, Mr Trump said: 'Iran militarily is effectively over. We're just keeping it the status quo.'Speculation that Tehran had made concessions over the Strait of Hormuz also helped drag the price lower.However, analysts warned peace may still be a long way off.'Oil continues to trade lower on hopes of a US-Iran peace deal rather than concrete signs of progress,' said Saxo Bank's Ole Hansen.Analysts say Donald Trump has 'toned down his bellicose rhetoric' on IranOil has fallen 24 per cent since the end of October when it was trading at $118 a barrel and now stands at its lowest level since the end of August.But it remains well above the $60 to $70 range seen before the conflict in the Middle East erupted early this year.That means motorists are still feeling the pain on forecourts across Britain with the average price of diesel close to £2 per litre while unleaded is around 170p.And households face a huge jump in their energy bills this winter with the price cap set to soar above £2,000 in January having risen from £1,663 a year to £1,723 last month.Richard Hunter, head of markets at Interactive Investor, said oil is still 'feeding into the inflationary picture' despite the recent drop.Brent crude fell 16 per cent last week in the biggest weekly drop since the start of the Covid-19 pandemic on hopes of a peace deal between the US and Iran.Those hopes were boosted over the weekend when Trump said it was 'highly unlikely' he would need to order a fresh round of strikes.Reports also suggested Iran had dropped its demand to control the Strait of Hormuz and charge vessels fees for passing through the crucial waterway.However, it is feared a deal may still be a long way off, with US Secretary of State Marco Rubio playing down the chances of a breakthrough in talks.And attacks continue with Iran claiming the US struck Qeshm island in the Strait of Hormuz overnight while Tehran-backed Houthi rebels have hit Saudi Arabia.David Morrison, senior market analyst at Trade Nation, said Trump has 'toned down his bellicose rhetoric' in the wake of last week's midterm elections in the US, where his Republican party suffered heavy losses to the Democrats.He added: 'In the lead-up to last week's midterms Trump had threatened to undertake aggressive military action against Iran to bring an end to the war. 'But he has dialled back on his threats and now says that he is highly unlikely to order heavy military strikes on condition that negotiations make progress.'DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you