WASHINGTON – Global oil prices dropped to $88.18 per barrel after Trump’s startling statement about ongoing Iran war.
The sharp drop came even as other key benchmarks moved in the opposite direction, with Brent Crude rising 6.76% to $98.96 per barrel and Murban Crude climbing 6.71% to $110.20.
The dramatic divergence in oil prices comes amid the intense turbulence gripping global energy markets as geopolitical tensions between the United States, Israel, and Iran escalate. Initial fears that the conflict could disrupt Middle Eastern oil supplies pushed global prices above $100 per barrel, especially amid growing concerns over shipping security in the Strait of Hormuz, a vital route for global oil exports.
However, the U.S. benchmark WTI soon reversed course. When trading opened on the Chicago Mercantile Exchange, the contract dropped roughly 5%, continuing a period of intense volatility triggered by uncertainty over supply risks tied to the Middle East conflict.
Markets reacted sharply after reports that the G7 nations and the United States Government were considering releasing as much as 400 million barrels of oil from strategic petroleum reserves (SPR) to stabilize global markets and offset potential supply disruptions.
As a result, while international benchmarks such as Brent continued to reflect fears of Middle East supply disruptions, WTI prices dropped sharply due to expectations of a sudden surge in domestic supply.
Trump says War With Iran Could End “Very Soon”
US president Donald Trump said the ongoing conflict with Iran could end “very soon as he decribed the first phase of the war as a “short-term excursion.”
According to Trump, U.S. and Israeli forces have struck around 5,000 targets in Iran since the conflict began on February 28, following the killing of Iran’s Supreme Leader Ali Khamenei.
The strikes have targeted nuclear facilities, infrastructure, and key industrial sites, including oil refineries and a desalination plant. The situation remains volatile as Iran’s political leadership reshapes itself after Mojtaba Khamenei, the son of the late leader, was confirmed as the country’s new Supreme Leader.
