Global oil prices tumbled sharply on Tuesday, dropping more than 11% in their steepest single-day fall since 2022, after U.S. President Donald Trump suggested that the war with Iran could end sooner than expected. The conflict had previously disrupted crude supplies and pushed prices to multi-year highs.
Brent crude futures fell by $11.16, or 11%, settling at $87.80 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude dropped $11.32, or nearly 12%, closing at $83.45 a barrel. Both benchmarks had surged above $119 a barrel just a day earlier, the highest level since June 2022, amid fears that the conflict could severely disrupt global oil shipments.
Market sentiment shifted after comments from the U.S. administration suggested that oil flows through the Strait of Hormuz might soon stabilize. Reports that the U.S. Navy escorted an oil tanker safely through the strategic waterway also helped calm supply concerns.
Energy analysts say the market is reacting to the possibility that oil exports could continue despite the ongoing conflict. However, experts caution that even if the war ends quickly, global supply chains may take time to recover.
Meanwhile, the fighting between the United States, Israel, and Iran continues, raising concerns about long-term disruptions in the global energy market.
