Oil prices fell more than 1% on Monday (26) after United States President Donald Trump pledged to announce a decision soon on next steps in the conflict with Iran. Investors remain sceptical about the prospect of a resolution, as tensions across the Middle East stay elevated.

North Sea Brent crude, the benchmark for European markets, was down 1.07% at $115.46 per barrel in morning trade, having reached a six-month high in the previous session. West Texas Intermediate (WTI), the North American benchmark, was losing 1.67% to trade at $101.53 per barrel. Moving in the opposite direction, TTF natural gas traded in Amsterdam rose 3.35% to €97 per megawatt-hour.

Over the weekend, Trump told Fox News that “the time is coming to make a decision” on whether to reach a deal with Tehran or “end the situation”, without providing details on what measures he might take. On the Iranian side, Foreign Minister Abbas Araghchi said Washington “will not try” to attack the Islamic Republic, provided the United States acts rationally.

The comments come against a backdrop of intensifying conflict. Last week, the White House ordered the evacuation of diplomats from the Middle East following a series of attacks by Iran-backed Houthi rebels against Saudi Arabia. Trump has signalled he may retaliate after the midterm elections on 3 November. Meanwhile, according to Bloomberg, Iran is reportedly preparing new strikes against Israel and the United Arab Emirates.

“The resurgence of fighting in the region, combined with concerns that an escalation is imminent, means that oil markets have to price in the risk of oil and refined product stock depletion,” said Vivek Dhar, an analyst at Commonwealth Bank of Australia, in a note cited by Bloomberg.

“We consider that Brent oil futures will need to rise to $150 per barrel to trigger a sharp reduction in demand, as high prices force Asian emerging economies to cut consumption,” the analyst added.