Oil and gas prices dropped sharply after Donald Trump suggested that the conflict involving Iran may be nearing an end, easing fears of a prolonged disruption to global energy supplies.
Crude prices had surged earlier in the week as markets reacted to the fighting in the Middle East. Brent crude oil nearly reached $120 per barrel on Monday before retreating to below $90 after Trump said the situation was “very complete” and likely to be short-lived.
Despite the decline, oil prices remain well above levels seen before the conflict began. The earlier surge raised concerns that supply routes could face major disruptions, particularly around the Strait of Hormuz, one of the world’s most important shipping passages for oil exports.
Industry leaders continue to warn about the risks. Amin Nasser, chief executive of Saudi Aramco, said prolonged disruption in the region could have serious consequences for global energy markets and the wider economy.
Market volatility also increased during trading on Tuesday. Prices briefly dropped further after Chris Wright, the U.S. energy secretary, posted online that an oil tanker had safely passed through the Strait of Hormuz with U.S. assistance. The message was later removed, and the White House confirmed that no naval escort had taken place.
The conflict has already pushed fuel prices higher in several countries. Analysts warn that if energy costs remain elevated, inflation pressures could rise again, adding further uncertainty to the global economic outlook.
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