Trump's Comments Trigger Massive Crude Price Reversal

Brent Crude Slides Below $100 After Trump Signals Iran War May End Soon​

Oil Prices Record Sharpest Intraday Reversal as Markets React to Policy Signals​

Global oil prices witnessed a dramatic reversal on Monday after US President Donald Trump indicated that the war involving Iran could end soon. Brent crude dropped more than $20 per barrel from its intraday peak, falling below the $100 per barrel level as markets reacted to the possibility of easing geopolitical tensions.

Brent crude had surged to an intraday high of $119.5 per barrel during the session. However, prices sharply reversed course later in the day, marking the largest drop from an intraday high to the closing price ever recorded for the commodity. The downward trend continued into Tuesday morning, with Brent trading about 7.5% lower near the $91 per barrel mark.

WTI Crude Sees Similar Volatility​

Futures on West Texas Intermediate crude also experienced significant volatility. WTI prices plunged as much as 10% to $85.02 per barrel after earlier climbing past $115 during Monday’s trading session.

This swing expanded WTI’s daily trading range to $38, the widest range seen since the pandemic period in 2020 when oil prices briefly turned negative.

Trump Proposes Measures to Stabilize Oil Markets​

Speaking at a press conference in Florida, Trump said his administration is considering steps aimed at reducing oil prices. He indicated plans to waive oil related sanctions and deploy the US Navy to escort tankers through the Strait of Hormuz.

Trump said the administration is focused on keeping oil prices under control and described the earlier surge as artificially driven by the ongoing conflict.

He also confirmed that he discussed the issue with Russian President Vladimir Putin during a phone call earlier on Monday. However, the US president did not provide detailed information about how the tanker escort plan or sanction waivers would be implemented.

Uncertainty Around Strait of Hormuz Shipping​

There remains uncertainty about whether ships are currently passing through the Strait of Hormuz, a critical global trade route through which about 20% of the world’s oil supply moves.

The conflict has already disrupted energy markets. Major Gulf producers, including Saudi Arabia, have reportedly curbed output as storage capacity becomes limited.

Energy Prices Rise Across Markets​

The war has pushed prices higher not only for crude oil but also for other energy products. Natural gas and diesel prices have climbed alongside oil.

In the United States, retail gasoline prices have risen to their highest level since August 2024.

G7 Discussions Also Influence Market Sentiment​

Oil prices had already begun easing during Monday’s session after a report indicated that the G7 nations were meeting to discuss the possibility of releasing emergency oil reserves.

France, which currently holds the presidency of the group, said the countries had not yet agreed to release reserves but are closely monitoring developments in global energy markets.