Oil prices plummeted after optimistic statements by Donald Trump
Oil prices crashed after U.S. President Donald Trump expressed optimism about the quick resolution of the war in the Middle East, which calmed markets and led to a decrease in prices.
On Tuesday, Brent crude futures fell by $4.17 to $94.79 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped by $3.81 to $90.96 a barrel. Both contracts had initially fallen by as much as 11% but later partially recovered their value.
The price drop occurred after Trump stated in an interview with CBS News that the war with Iran was “totally over” and that Washington was “far ahead” of its initial forecasts. The U.S. President is also considering easing oil sanctions against Russia and releasing emergency oil reserves in an attempt to curb rising prices.
Despite optimism in the markets, Iran expressed its stance through the Islamic Revolutionary Guard Corps, stating that Tehran would determine the end of the war and would not allow oil exports from the region if attacks continued. This caused tensions amid the falling prices.
The international community, including G7 countries, expressed readiness to take “necessary measures” in response to rising oil prices but refrained from promising to unlock emergency reserves.
| Type of oil | Price on Tuesday, $/barrel | Change, % |
|---|---|---|
| Brent | 94.79 | -4.2% |
| WTI | 90.96 | -4% |
