Web Desk: Global crude oil prices dropped sharply on Tuesday after US President Donald Trump signalled that the conflict with Iran could soon end, easing concerns over supply disruptions and triggering a broad selloff in energy markets.
Benchmark Brent crude fell about 8 percent in global trading, sliding to around $90 per barrel. Meanwhile, West Texas Intermediate crude also declined, dropping from above $89 to roughly $87 per barrel during the session.
The decline followed sharp gains a day earlier when oil prices briefly surged past $119 per barrel amid fears that the escalating conflict could disrupt energy supplies from the Middle East.
In an interview with U.S. broadcaster CBS, Trump said he believes the war against Iran is largely complete and that prospects for ending the conflict are strong.
“I think the war with Iran is largely finished, and the chances of it ending soon look very good,” Trump said, according to the interview.
His comments quickly calmed energy markets that had been pricing in prolonged geopolitical risk.
Earlier, while addressing a Republican conference, Trump also announced the removal of certain restrictions related to the oil industry. He said the move aimed to increase supply and help push prices lower.
Analysts said the policy shift, combined with optimism about a potential end to hostilities, contributed to the rapid fall in crude prices.
The latest drop came after a dramatic rally in the previous session, when global crude prices climbed above $119 per barrel. The surge had prompted the Group of Seven major economies to signal they were prepared to tap emergency oil reserves if necessary.
However, expectations that the conflict may soon wind down, along with Trump’s remarks about easing oil-sector restrictions, shifted market sentiment and drove prices lower in Tuesday trading.
Energy traders said markets will now watch closely for confirmation of de-escalation between Washington and Tehran, as well as any further policy measures that could affect global oil supply.
Read more: Trump claims military operation against Iran nears end
