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LONDON: Oil prices fell on Monday after US President \u200cDonald Trump downplayed the likelihood of renewed strikes on Iran, though attacks on ships near the Strait of Hormuz kept supply concerns in focus.<\/strong><\/p>\n Brent crude dropped by 75 cents, or 0.75%, to $97.57 a barrel by 1011 GMT while \u200bUS West Texas Intermediate lost 38 cents, or 0.4%, to $90.45.<\/span><\/p>\n The Brent benchmark plunged 16% last \u200bweek for its steepest weekly drop since the start of the COVID-19 pandemic.<\/span><\/p>\n \u201cOil \u2060continues to trade lower on hopes of a US-Iran peace deal rather than concrete signs of \u200bprogress,\u201d said Saxo Bank analyst Ole Hansen, adding that US President Trump\u2019s latest comments that fresh strikes \u200bon Iran are highly unlikely have added to the pressure on prices.<\/span><\/p>\n UBS analyst Giovanni Staunovo said: \u201cWeakness in the physical market, supported by still-elevated flows out of the Middle East, is one factor weighing on prices.\u201d<\/span><\/p>\n Trump said on Sunday that \u200bhe was highly unlikely to order fresh attacks on Iran as long as talks to end \u200bthe conflict progressed, even as both countries reported that shipping had been hit in or near the Strait of \u200cHormuz.<\/span><\/p>\n He \u2060had hinted at renewing attacks on Iran after last week\u2019s US midterm elections, but there has been no sign of a large-scale US military operation. Iran has said it would respond by striking US and Israeli targets.<\/span><\/p>\n Tim Waterer, chief analyst at KCM Trade, called Trump\u2019s comments \u201cmore measured\u201d but said the market \u200bis still waiting to \u200bsee whether the midterms \u2060have produced a lasting shift in Trump\u2019s approach to the conflict, or whether this is just another temporary change in tone.<\/span><\/p>\n Oil is headed for a \u200bglut again as recovering Middle Eastern oil flows, rising production from other \u200bcountries and \u2060weak demand have pushed global supply above consumption, JPMorgan said in a report on Friday, estimating a surplus of 1.1 million barrels per day in September, widening to 1.4 million bpd in October.<\/span><\/p>\n