Oil prices drop 15% as Trump predicts possible end to Iran conflict

NEW YORK: Global oil prices experienced a significant decline of approximately 15 percent on Tuesday, following remarks by US President Donald Trump suggesting that the ongoing conflict with Iran could soon come to an end. The comments raised hopes of reduced disruptions to global oil supplies.

Brent crude futures fell by $14.23, or 14.5 percent, reaching $84.73 per barrel at 2:01pm EDT (1801 GMT). Meanwhile, US West Texas Intermediate (WTI) crude dropped $14.46, or 15.5 percent, to $80.31 per barrel. Prices had dipped even further earlier in the day.

The downward trend in oil prices was further influenced by a statement from US Energy Secretary Chris Wright on the social media platform X. Wright wrote that the US military had facilitated a shipment of oil through the Strait of Hormuz. In his post, Wright stated, “President Trump is maintaining stability of global energy during the military operations against Iran.” He added, “The US Navy successfully escorted an oil tanker through the Strait of Hormuz to ensure oil remains flowing to global markets.” The post was made at 1:02pm local time before it appeared to be removed.

The developments come as President Trump’s Republican Party prepares to campaign for the upcoming US Congress midterm elections in November. The recent actions and statements by US officials appear to be aimed at reassuring global markets about the stability of energy supplies amid ongoing military operations in the region.

Market analysts are closely monitoring the situation, as any further de-escalation in the conflict could continue to ease concerns over potential supply disruptions. The Strait of Hormuz is a critical passageway for global oil shipments, and its security is considered essential for maintaining steady energy flows worldwide.