Oil Falls as U.S. President Predicts Middle East De-Escalation

PUKMEDIA

Oil prices.

Oil prices fell on Tuesday after reaching a more than three-year high in the previous session, as U.S. President Donald Trump predicted the war in the Middle East could end soon, easing concerns over prolonged disruptions to global oil supplies.

According to Reuters report, Brent futures fell $4.17, or 4.2%, to $94.79 a barrel at 0345 GMT, while U.S. West Texas Intermediate (WTI) crude was down $3.81, or 4%, to $90.96 a barrel. Both the contracts fell as much as 11% earlier before paring some losses.

Oil prices surged past $100 a barrel on Monday, reaching their highest level since mid-2022, as supply cuts by Saudi Arabia and other producers during the expanding U.S.–Israeli conflict with Iran heightened fears of major disruptions to global supply.

Prices later retreated after Russian President Vladimir Putin held a phone call with U.S. President Donald Trump and presented proposals aimed at reaching a swift settlement to the war with Iran, according to a Kremlin aide. The development eased concerns about a prolonged disruption to oil supplies.

In an interview with CBS News on Monday, President Trump said he believes the war against Iran “is very complete” and that Washington was “very far ahead” of his initial estimate of four to five weeks.

Responding to Trump’s remarks, Iran’s Islamic Revolutionary Guard Corps (IRGC) said it would “determine the end of the war” and warned that Tehran would not allow “one litre of oil” to be exported from the region if U.S. and Israeli attacks continued, Iranian state media reported on Tuesday, citing an IRGC spokesperson.

Despite the earlier surge, oil prices remain under pressure as Trump considers easing oil sanctions on Russia and releasing emergency crude stockpiles as part of a range of measures aimed at curbing rising global oil prices, according to several sources.

Meanwhile, G7 nations said on Monday they were prepared to take “necessary measures” in response to the surge in global oil prices, but stopped short of committing to releasing emergency reserves.



PUKMEDIA