Crude oil climbed as high as $87.75 a barrel on Thursday before trimming gains to trade near $86 a barrel, its lowest level since August 31. The pullback came as evidence of recovering Saudi supply outweighed mounting tensions between Washington and Tehran.
Saudi Arabia reported a 26% increase in oil output in October, lifting production to one of its highest monthly levels in years. Iraq also boosted output to a wartime record. Despite disruptions to traffic through the Strait of Hormuz, exports held up, supported by alternative routes including Saudi Arabia’s East–West pipeline to the Red Sea and ship‑to‑ship transfers.
On the political front, President Donald Trump said the US no longer needs a deal with Iran, signalling a departure from recent diplomatic overtures. Tehran likewise held a firm line, with senior official Mohsen Rezaee rejecting any removal of enriched nuclear material from the country.
