President Donald Trump said Thursday that the United States will not launch new military strikes against Iran before the November 3 midterm elections, marking a notable shift in tone after days of reports about preparations for a potential military escalation.
The announcement came just one day after Axios reported that the Pentagon had instructed U.S. Central Command to finalize preparations for possible large-scale combat operations against Iranian targets.
Those preparations reportedly included options involving Iranian energy infrastructure, military facilities and nuclear-related sites. No final order to launch the strikes had been announced.
In a Truth Social statement, Trump said Washington was engaged in productive discussions with Tehran and confirmed that the United States would refrain from attacking Iran before the elections.
Oil markets react
Crude prices declined Friday following Trump's remarks, as traders reassessed the near-term risk of another U.S. military escalation.
Brent crude fell toward $103 per barrel, while West Texas Intermediate retreated toward $90, reversing part of the previous session's gains.
The relief comes after escalating tanker attacks, shipping disruptions and fears of further conflict in the Strait of Hormuz had pushed energy prices higher.
But the threat has not disappeared
Trump's announcement does not represent a permanent ceasefire or a diplomatic breakthrough.
The U.S. blockade restricting Iranian oil exports remains in place, and significant disagreements between Washington and Tehran have yet to be resolved.
The administration has also maintained its military presence in the region, leaving operational options available should negotiations fail.
For investors, the distinction matters: a delay in military action reduces immediate escalation risk but does not eliminate the geopolitical premium embedded in oil prices.
##What to watch
The biggest question is whether negotiations can produce meaningful progress before November 3.
Markets will also monitor tanker traffic through Hormuz, Iranian responses to U.S. proposals, and whether Washington maintains its commitment to avoid new strikes before the election.
A sustained easing in oil prices could help calm inflation expectations and Treasury yields, potentially improving sentiment toward growth stocks.