Oil Prices Drop as Trump Rules Out Iran Attack Before Midterms

Oil prices are falling after U.S. President Donald Trump stated that the United States will not attack Iran before the upcoming midterm congressional elections on November 3. The WTI crude benchmark lost 1.3% to $90.3 per barrel, and Brent crude fell 1.5% to $102.8 per barrel.

Despite military preparations for a potential three-day intensive operation against Iran, reportedly developed by the Pentagon based on U.S. officials' accounts to The New York Times, Trump has hesitated to renew significant combat operations. The report indicated that Trump has rejected five proposals for major military actions against Iran or Houthi rebels in Yemen in recent months.

Trump announced on his Truth Social platform that Washington and Tehran are engaged in "productive talks" and that the U.S. sanctions on Iran will continue with full force. He asserted that Iran is in a very difficult economic and military situation.

In other news, Australian AI company Firmus has canceled its planned initial public offering (IPO) due to market volatility and conditions. The company's board determined that the proposed terms did not adequately reflect its operational scope and growth. Firmus had intended to raise $5 billion in what would have been Australia's second-largest IPO, valuing the company at approximately $30.6 billion.

Asian stock markets are trading mixed. Tokyo's Nikkei index is down 0.3%, Hong Kong's Hang Seng is up 1.1%, Shanghai is down 1.2%, and Australia's S&P/ASX 200 is up 0.4%. The Korean stock exchange is closed for a holiday. U.S. markets closed lower on Thursday, with the S&P 500 down 0.5%, the Nasdaq off 1.3%, and the Dow Jones up slightly by 0.1%. Technology and chip stocks led the decline, with Nvidia down 2.9%, Intel down 5.3%, and ARM down 6.5%, following a report that OpenAI's revenues were $20 billion lower than previously stated.