Global
Oil prices fall after Trump signals Iran war may end soon
LONDON: Global oil prices fell sharply after Donald Trump said the ongoing conflict with Iran could end “very soon”, easing fears of prolonged disruption to energy supplies from the Middle East.
Oil prices had surged to nearly $120 per barrel on Monday amid concerns that the war could affect global supply routes, but later dropped to around $93 following Trump’s remarks.
Despite the decline, crude prices remain significantly higher than levels recorded before the conflict began, while global stock markets showed signs of recovery.
Britain’s benchmark FTSE 100 opened 1.3% higher as investor confidence improved.
Speaking to reporters, Trump said the conflict appeared close to ending but warned Iran against blocking the Strait of Hormuz — a critical passage through which about one-fifth of the world’s oil supply passes.
“If Iran stops the flow of oil through the Strait of Hormuz, the United States will respond much more strongly,” he said in a social media post.
In response, the Islamic Revolutionary Guard Corps warned that Iran’s armed forces would not allow the export of oil from the region if tensions escalate.
During Asian trading, Brent crude briefly fell below $84 a barrel before rebounding to about $93.76, while West Texas Intermediate dropped around 4% to $90.96 per barrel.
Analysts said the fall in prices provided temporary relief for traders, though markets remain highly volatile due to the uncertain geopolitical situation.
Energy expert Alberto Bellorin from InterCapital Energy said oil trading is likely to remain “extremely sensitive,” with prices expected to spike if tensions escalate and fall if the conflict eases.
Stock markets across Asia also recovered as concerns about the economic impact of the crisis eased. Japan’s Nikkei 225 rose 2.9%, while South Korea’s KOSPI gained 5.4%.
Experts noted that although prices have fallen from Monday’s peak, oil is still around 20% more expensive than before the United States and Israel launched airstrikes on Iran last week.
Meanwhile, leaders of the Group of Seven (G7) said they were prepared to take necessary measures to stabilise global energy markets if required.
A meeting between G7 leaders and the International Energy Agency discussed the possibility of releasing oil from strategic reserves, though no final decision was announced.
British Chancellor Rachel Reeves said the UK had urged immediate de-escalation in the Middle East and stressed the importance of ensuring safe shipping in the region.
