Oil prices dropped on Tuesday after hitting a more than three-year high in the previous session. The decline followed U.S. President Donald Trump’s prediction that the war in the Middle East could soon end, calming fears of prolonged global supply disruptions.
اضافة اعلان
Market Figures:
Brent Crude: Futures fell by more than $9 to $89.58 per barrel (00:18 GMT).
WTI (U.S. Crude): Plunged $9 to $85.77 per barrel.
Just yesterday, prices had surged past $100, peaking at $119.50 for Brent and $119.48 for WTI—their highest levels since mid-2022. These spikes were driven by supply cuts from Saudi Arabia and other producers amid the U.S.-Israeli war with Iran, which sparked intense fears of a massive global supply shock.
Diplomatic Shifts and Trump’s Rhetoric
Prices later retreated after a Kremlin aide revealed that Russian President Vladimir Putin held a phone call with Trump to exchange proposals aimed at a swift resolution to the conflict. Furthermore, Trump told CBS News on Monday that Washington is "very far along," exceeding his initial four-to-five-week timeline for the war.
In response, a spokesperson for the Iranian Revolutionary Guard stated that Tehran would be the one to "determine the end of the war," threatening to block "a single liter of oil" from being exported from the region if U.S. and Israeli attacks persist.
Factors Dampening the Rally
Despite the Iranian threats, prices remained under pressure due to reports that Trump is considering:
Easing oil sanctions on Russia.
Releasing emergency crude reserves to curb the global price surge.
Tony Sycamore, a market analyst at IG, noted: "Given the events of the past 24 hours, I expect crude oil to remain highly volatile, trading in a wide range between $75 and $105 in the coming sessions."
Regional Production Cuts
Gulf oil-producing nations have already begun scaling back output as the conflict disrupts regional shipping:
Iraq: Cut production in its major southern fields by 70% to 1.3 million barrels per day.
Kuwait: Commenced production cuts and declared force majeure.
Saudi Arabia: Sources confirmed on Monday that the Kingdom has also begun reducing its output.
Meanwhile, G7 nations stated they are ready to implement "necessary measures" in response to rising prices but stopped short of committing to a release of emergency reserves.
(Source: Reuters)
