Crude Oil Price: After reaching its highest level in more than three years in the last session, oil prices fell on Tuesday. It came as US President Donald Trump predicted that the war in the Middle East could end soon, reducing concerns about prolonged disruptions to global oil supplies.
Brent futures fell $6.51, or 6.6%, to $92.45 a barrel by 0018 GMT, while US West Texas Intermediate (WTI) crude fell $6.12, or 6.5%, to $88.65. Oil prices rose above $100 a barrel on Monday, hitting session highs of $119.50 for Brent and $119.48 for WTI, their highest levels since mid-2022.
This comes as supply cuts by Saudi Arabia and other producers have raised fears of major disruptions in global supplies amid the escalating US-Israel conflict with Iran. Russian President Vladimir Putin later spoke with Trump and shared proposals for a quick resolution to the Iran war, reducing concerns about a prolonged supply disruption, according to a Kremlin aide.
Trump said he believes the war against Iran is “over” and that Washington is “far ahead” of his initial four to five week timeframe. In response to Trump, Iran’s Revolutionary Guards (IRGC) said they would “decide to end the war” and that Tehran would not allow “even a liter of oil” to be exported from the region if US and Israeli attacks continued, state media quoted an IRGC spokesman as saying on Tuesday.
But the comments did not boost prices, which were also under pressure as Trump is considering lifting the oil embargo on Russia and releasing emergency crude stocks, part of a package of options aimed at curbing rising world oil prices amid the Iran conflict, according to multiple sources.
“Given the events of the last 24 hours, I expect crude oil to remain highly volatile in the coming session, and trade in a wide range between $75ish and $105ish,” IG Markets analyst Tony Sycamore said in a note.
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