Brent crude slipped as oil markets reopened on Sunday evening, with traders taking a muted view of fresh shipping incidents near the Strait of Hormuz after US President Donald Trump said he was highly unlikely to order new strikes on Iran while talks to end the conflict continue. Brent futures reopened 0.2% lower at $97.48 a barrel, and Reuters reported Brent down 64 cents, or 0.64%, at $97.67, having briefly fallen more than $1 a barrel. US crude, West Texas Intermediate, fell 35 cents, or 0.40%, to $90.51 a barrel.

Trump made the remarks in a phone interview with CNN, saying the decision would turn on whether Tehran signed what he called a very strong agreement. "It depends on whether or not they sign a very strong agreement," he said. "The answer is, highly unlikely it's going to be necessary." His comments cooled the immediate fear of a renewed military campaign that had driven oil prices sharply higher in recent weeks.

Trump had hinted at renewing major attacks on Iran after last week's US midterm elections, but there has been no sign of a large-scale US military operation. Iran has said it would respond to any new attack by striking US and Israeli targets. Even so, both countries reported that shipping had been hit in or near the Strait of Hormuz over the weekend, keeping the risk to one of the world's most important oil routes firmly in traders' minds.

The muted market reaction stands in contrast to the scale of last week's sell-off. Brent settled on Friday at $98.32 a barrel after a steep fall over the week, as traders bet that the midterm results had opened the way to a diplomatic deal with Iran. Sunday's small dip suggests the market is now waiting for concrete progress in the talks rather than reacting to each new incident at sea.

Traders now look to a busy week of data for the next steer. The US consumer price index is due on Tuesday, the Energy Information Administration publishes its short-term energy outlook the same day, and OPEC releases its monthly report on Wednesday. Any of those could shift the balance between hopes for a deal and the risk premium still attached to Gulf shipping.

For now, the market is caught between two forces. Diplomacy offers the prospect of lower prices if an agreement eases the threat to shipping and restores calmer flows through the Strait of Hormuz. But the weekend's incidents are a reminder that the conflict has not ended, and that the risk to supplies can return quickly if the talks falter.