Oil prices fell on Tuesday after hitting over three-year highs in the previous session, following comments from former U.S. President Donald Trump suggesting the Middle East war could end soon, easing fears of prolonged disruptions to global oil supplies.
Brent crude futures dropped $4.17, or 4.2%, to $94.79 a barrel at 0345 GMT, while U.S. West Texas Intermediate (WTI) crude fell $3.81, or 4%, to $90.96 a barrel. Both contracts had earlier fallen as much as 11% before partially recovering losses.
Prices had surged past $100 a barrel on Monday, reaching their highest levels since mid-2022, driven by supply cuts from Saudi Arabia and other producers amid the expanding U.S.-Israeli conflict with Iran, which raised fears of significant global supply disruptions.
The retreat in prices followed a call between Russian President Vladimir Putin and Trump, during which Moscow reportedly shared proposals for a quick settlement to the Iran conflict, according to a Kremlin aide.
Trump told CBS News on Monday that he believes the war against Iran “is very complete” and said the U.S. was “very far ahead” of his initial four- to five-week estimated timeframe, further boosting market confidence and easing immediate supply concerns.
