Global oil markets witnessed sharp volatility on Tuesday as prices swung in opposite directions following a startling statement by Donald Trump regarding the ongoing war with Iran.
U.S. benchmark crude prices dropped to $88.18 per barrel, reversing earlier gains, even as other major oil benchmarks moved higher.
Brent crude surged 6.76% to $98.96 per barrel, while Murban crude climbed 6.71% to $110.20, highlighting a dramatic divergence across global energy markets.
Middle East Tensions Drive Market Turbulence
The sharp contrast in oil prices comes amid escalating geopolitical tensions involving the United States, Israel, and Iran.
Early fears that the conflict could disrupt Middle Eastern oil supplies pushed global crude prices above $100 per barrel, particularly as concerns mounted over shipping security in the Strait of Hormuz, through which a significant share of the world’s oil exports passes.
However, the U.S. benchmark West Texas Intermediate quickly reversed course.
When trading opened on the Chicago Mercantile Exchange, WTI futures fell nearly 5%, extending a period of extreme volatility driven by uncertainty over supply risks tied to the Middle East conflict.
Strategic Oil Release Calms U.S. Markets
Market sentiment shifted sharply after reports that G7 nations, alongside the U.S. government, were considering the release of up to 400 million barrels of oil from strategic petroleum reserves.
The potential move is aimed at stabilizing global markets and offsetting any supply disruptions caused by the conflict.
As a result, while international benchmarks such as Brent continued to price in fears of prolonged Middle East instability, WTI prices dropped on expectations of a sudden increase in domestic supply.
Trump Says Iran War Could End “Very Soon”
Adding to the volatility, President Trump said the war with Iran could end “very soon”, describing the first phase of the conflict as a “short-term excursion”.
According to Trump, U.S. and Israeli forces have struck nearly 5,000 targets in Iran since the conflict began on February 28.
He claimed the strikes focused on nuclear facilities, infrastructure, and key industrial sites, including oil refineries and a desalination plant.
Trump also stated that Iran’s political leadership is undergoing rapid change following the confirmation of Mojtaba Khamenei as the country’s new supreme leader.
Despite the remarks, analysts caution that the situation remains highly fluid, with oil markets expected to stay volatile as traders weigh geopolitical risks against potential supply interventions in the days ahead.
