Crude oil prices tanked sharply on Tuesday following US President Donald Trump’s announcement that a settlement in the Iran war was likely, easing fears of prolonged supply disruptions.
Brent crude oil futures (May contract) were trading 0.47 per cent lower at $88 per barrel on Tuesday, compared with Monday’s close of $89 per barrel.
West Texas Intermediate (WTI) crude oil futures (April contract) fell more dramatically, dropping 9.95 per cent to $85.29 per barrel from the previous close of $94.77 per barrel.
The steep decline came after Trump, speaking late on Monday at his Miami golf course, stated that the United States was “achieving major strides towards completing our military objectives” and that “we are getting very close to achieving all of our objectives soon.”
His comments signalled that the war in Iran could end in the near term, relieving market pressure that had driven prices to record highs.
Brent crude had reached an intraday peak of $119.50 per barrel on Monday amid escalating tensions and Iran’s effective closure of the Strait of Hormuz—one of the world’s most critical energy corridors.
However, Trump’s optimistic remarks, combined with statements from G7 finance ministers, triggered a sharp reversal.
During early Tuesday trading, Brent futures plunged more than 27 per cent to $86.93 per barrel, while WTI futures recorded a similar 30 per cent drop to $83.17 per barrel.
The G7 finance ministers, including France’s Roland Lescure, had convened an emergency meeting and signalled readiness to intervene. Lescure stated, “We are not there yet.
“What we’ve agreed upon is to use any necessary tools if need be to stabilise the market, including the potential release of necessary stockpiles,” he said.
Also read: Trump claims Iran war ‘complete’, later says not yet
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