Oil prices dropped on Tuesday after reaching their highest level in more than three years in the previous session, as comments from Donald Trump suggesting the Middle East war could end soon eased worries about prolonged disruptions to global crude supplies.
Brent crude futures fell $4.17, or 4.2%, to $94.79 a barrel by 03:45 GMT. U.S. West Texas Intermediate (WTI) crude declined $3.81, or 4%, to $90.96 a barrel. Both benchmarks had earlier plunged by as much as 11% before recovering part of their losses.
Prices had surged past $100 a barrel on Monday, their highest level since mid-2022, after production cuts by Mohammed bin Salman’s Saudi Arabia and other producers coincided with an expanding U.S.-Israeli war with Iran, fuelling fears of severe supply disruptions.
Markets later cooled after Vladimir Putin spoke with Trump and presented proposals aimed at quickly resolving the conflict with Iran, according to a Kremlin aide. The development eased concerns about a prolonged interruption to oil supplies.
Trump told CBS News on Monday that he believed the war with Iran was «very complete» and that Washington was «very far ahead» of his original four-to-five-week timetable.
Iran’s Response
Responding to Trump’s remarks, Iran’s Islamic Revolutionary Guard Corps said it would «determine the end of the war» and warned Tehran would not allow «one litre of oil» to leave the region if U.S. and Israeli attacks continued, according to state media citing an IRGC spokesperson.
Prices also remained under pressure as Trump reportedly considered easing oil sanctions on Russia and releasing emergency crude reserves to curb rising global prices, according to several sources familiar with the discussions.
Members of the Group of Seven said on Monday they were ready to take «necessary measures» in response to the spike in global oil prices, although they stopped short of pledging to release emergency reserves.
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