Oil prices are trading lower on Friday after Brent crude surged more than 4% the previous session, as US President Donald Trump signalled there would be no American military strike against Iran ahead of November’s midterm elections and pointed to “productive discussions” with the Islamic Republic.

Brent crude, the European benchmark, was down 0.82% at $103.43 per barrel, while West Texas Intermediate (WTI), the US benchmark, fell 0.68% to $90.87 per barrel.

In a social media post, Trump said crude oil was transiting the Strait of Hormuz in “record volumes” and dismissed a report by The Atlantic that had raised the possibility of a US strike on Iran before the midterms. He also confirmed that a naval blockade of Iranian ports would remain in place.

The decision to step back from further military action comes despite an escalation of Iranian attacks in the Strait of Hormuz, which has increased risks for vessels transporting crude oil to international markets through the critical waterway.

Oil has had a volatile start to October as the conflict between the United States and Iran has dragged on. Futures contracts have swung in response to rising oil flows from the Middle East, intensifying attacks on shipping vessels, and tightening supplies of refined petroleum products. A surge in maritime freight rates and the resumption of fighting between Saudi Arabia and Tehran-backed Houthi forces in Yemen have added renewed upward pressure on prices in recent days.

“The risk of a renewed military escalation disrupting those flows is leaving traders reluctant to increase short positions more aggressively and to bet on a sustained break below $100 per barrel,” Chris Weston of Pepperstone Group told Bloomberg. “This is a market that can go both ways, where the geopolitical risk premium is competing with improving physical supply conditions,” he added.