TRUMP DRAWS TWO RED LINES ON IRAN BUT KEEPS PICKAXE MOUNTAIN STRIKE IN PLAY

What happened: Trump told Newsmax he would not use nuclear weapons on Iran and does not see US ground troops there, but said the US may have to strike Pickaxe Mountain near Natanz. Key numbers: US crude traded near $97 a barrel, close to $100. Pickaxe Mountain is estimated buried about 100 metres underground. Midterms are in early November. Why it matters: The remarks largely restate earlier positions, so oil may not move much, but they keep a strike option alive and sustain a geopolitical risk premium. Hormuz disruption and tanker attacks remain the main oil risk.

Trump told Newsmax he would not use nuclear weapons on Iran and does not see US ground troops there, but said the US may have to strike Pickaxe Mountain near Natanz.

The remarks largely restate earlier positions, so oil may not move much, but they keep a strike option alive and sustain a geopolitical risk premium. Hormuz disruption and tanker attacks remain the main oil risk.