Oil prices dropped sharply after US President Donald Trump suggested the conflict with Iran could soon end, easing fears of major disruption to global energy supplies.
Oil prices fall as Trump signals end conflicts in Middle East
Crude oil had surged close to $120 a barrel earlier in the week amid concerns that the war could threaten shipments from the Middle East, particularly through the strategic Strait of Hormuz. However, prices later fell below $90 following Trump’s comments that the conflict was “very complete, pretty much”.
The fall in oil prices helped global stock markets recover after several days of volatility driven by concerns over supply shortages and escalating tensions in the region.
The Strait of Hormuz remains a key flashpoint. Around a fifth of the world’s oil shipments typically pass through the narrow waterway, making it one of the most critical energy routes globally. Disruption to the corridor has raised fears of a wider energy shock.
Amin Nasser, head of energy giant Saudi Aramco, warned earlier that a prolonged blockade could have “catastrophic consequences” for global markets, noting that oil stockpiles are already at their lowest levels in five years.
Lower crude prices have also begun feeding into fuel markets. Nigeria’s Dangote Refinery announced it had reduced wholesale prices for petrol and diesel following recent spikes linked to the conflict.
Meanwhile, governments and energy agencies are monitoring the situation closely.
The International Energy Agency has been holding talks with G7 nations about potentially releasing emergency oil reserves if supply disruptions worsen.
Despite the recent price drop, analysts say energy markets remain highly sensitive to developments in the Middle East. Any escalation in the conflict or renewed threats to shipping routes could trigger another surge in oil prices.
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