Oil drops after Trump predicts quick end to war

Oil prices fell sharply on Tuesday after soaring to a more than three-year high a day earlier, as U.S. President Donald Trump predicted the war in the Middle East could end soon, easing fears of prolonged disruptions to global oil supplies.

Brent crude dropped $4.17, or 4.2%, to $94.79 per barrel, while U.S. West Texas Intermediate (WTI) fell $3.81, or 4%, to $90.96 in early trading. Both benchmarks had surged past $100 per barrel on Monday, briefly reaching their highest levels since mid-2022 before retreating, News.az reports, citing Reuters.

The earlier rally was fueled by fears that the expanding U.S.–Israeli conflict with Iran could severely disrupt oil shipments in the Middle East, particularly through the Strait of Hormuz, one of the world’s most critical energy routes.

Markets began to calm after Trump said in a CBS News interview that he believed the conflict could end sooner than expected, adding that Washington was “very far ahead” of his earlier estimate that the war might last four to five weeks.

Oil prices also eased after Russian President Vladimir Putin reportedly held a call with Trump and presented proposals aimed at quickly resolving the conflict, according to a Kremlin aide.

Analysts say Trump’s remarks helped cool the sharp rally in oil markets, though risks remain.

“Trump’s comments about a short-lived war have clearly calmed markets,” said Suvro Sarkar, energy sector team lead at DBS Bank. However, he noted that some Middle Eastern benchmark crude grades such as Murban and Dubai remain above $100 per barrel, suggesting underlying supply concerns persist.

Tensions remain high. Iran’s Islamic Revolutionary Guard Corps (IRGC) warned that it would determine how the war ends and threatened to block oil exports from the region if U.S. and Israeli attacks continue.

Meanwhile, the United States is reportedly considering several measures to stabilize prices, including easing sanctions on Russian oil and potentially releasing emergency crude reserves, while G7 countries are also monitoring markets for possible coordinated action.

News.Az 

By Aysel Mammadzada