Oil prices rise after Trump says no strike on Iran before midterms

Oil futures closed slightly higher on Wednesday. The market reacted with relief after President Trump said the United States will not strike Iran before the U.S. midterm elections. The comment eased fears of a military conflict that could disrupt global oil supplies. When supply concerns ease, prices often stop rising sharply. Traders had been watching for any sign of U.S. military action against Iran. Iran is a major oil producer, and a strike could threaten shipments through the Persian Gulf. The midterm elections will be held in November. Trump’s statement suggested he will hold off on military action until after voters go to the polls. Oil prices ended the day modestly higher, recovering from earlier uncertainty.