Global stocks rose Friday after President Donald Trump announced that the United States would not attack Iran before next month’s midterm elections. Oil prices also fell, easing concerns about near-term energy supplies.
“We will not be attacking Iran at any time prior to the Midterm Elections to be held in the United States on November 3rd,” Trump wrote on Truth Social, adding that the U.S. was having “productive discussions with the Islamic Republic of Iran.”
Brent crude fell to $103 per barrel, while West Texas Intermediate crude dropped to $90 per barrel.
Trump’s post came after The Atlantic reported that the administration was considering striking Iran before the midterm elections. The publication said the Pentagon was weighing its options, though no final decision had been made.
Oil prices had risen earlier in the week amid increased attacks on vessels near the Strait of Hormuz and Houthi-claimed attacks on two airports in Saudi Arabia.
READ: Oil shipments near Strait of Hormuz turn costlier as sailors risk attacks for $25,000 (October 5, 2026)
Meanwhile, Hurricane Isaias was nearing the Gulf Coast and could make landfall Friday. Chevron said it was evacuating nonessential personnel from its offshore platforms in the region.
“These factors outweighed the news that the International Energy Agency was accelerating the release of stockpiles of oil and distillates,” David Morrison, senior market analyst at Trade Nation, said Thursday.
Investors remained cautious despite the rise in stocks. According to Reuters, they were weighing another wave of fundraising by technology companies as borrowing costs in some of the world’s largest economies hovered near multiyear highs.
“We are in a period following the central bank policy meetings and before earnings season, which means that markets are more vulnerable to being whiplashed by day-to-day commentary,” said Guy Miller, chief market strategist at Zurich Insurance Group.
“Equity markets are still robust. They’ve been able to weather much higher bond yields and the volatility within these markets well, and the outlook is good as we head towards earnings season.”
Third-quarter earnings season is set to begin next week for several Wall Street banks.
Higher energy costs are adding to expectations that the Federal Reserve will maintain its restrictive monetary policy to curb inflation. Markets have fully priced in a 25-basis-point Federal Reserve rate increase in December. Bond yields have climbed worldwide, with the 10-year yield rising to 5.32%.
Volatile crude oil prices, coupled with limited refining capacity, have pushed refined fuel prices higher.
READ: Trump warns Iran as Hormuz talks raise hopes (August 26, 2026)
Gasoline prices averaged $4.36 per gallon Thursday, according to AAA data cited by Yahoo Finance. Diesel prices stood at $6.28 per gallon, down 2 cents from Wednesday.
The administration has been exploring ways to ease high energy costs ahead of November’s midterm elections. Trump told a reporter Tuesday that he was considering suspending the federal gasoline tax.
Earlier reports indicated that oil companies were using large tankers to transport oil outside the Strait of Hormuz to avoid attacks. Each trip can cost up to $40 million, but leaving the oil stranded would be even more costly than absorbing higher freight expenses and selling the oil at narrower margins.
To keep shipments moving, sailors are being offered up to $25,000 per round trip, according to an earlier report.