Trump discusses end of Iran war, oil prices fall, supply pressure eases

Investing.com - On Tuesday morning in Asia, oil prices declined after a highly volatile trading day. U.S. President Donald Trump discussed the imminent end of the Iran conflict and proposed measures to help ease oil supply disruptions.

After experiencing sharp fluctuations on Monday, crude oil prices closed lower, briefly soaring to nearly $120 per barrel during trading, then falling back below $90 per barrel. Market focus mainly centered on any new developments in the U.S.-Israel and Iran war, which entered its 11th consecutive day on Tuesday.

As of 20:27 Eastern Time (00:05 Beijing Time), May-delivered Brent crude futures fell 7.4% to $91.68 per barrel, while U.S. WTI crude futures dropped 6.7% to $85.27 per barrel.

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The decline in oil prices was driven by President Donald Trump’s multiple statements on Monday indicating that the Iran war is nearing its end, although he did not provide a specific timeline.

Trump also suggested the possibility of granting some exemptions for oil sales to sanctioned entities (mainly Russia) to help curb supply disruptions in the Middle East. Last week, Washington was believed to have allowed India to purchase Russian oil for at least a month.

Earlier Monday, oil prices surged to $119.50 per barrel amid serious escalation in the Iran conflict, especially after U.S. and Israeli forces attacked multiple Iranian energy facilities.

Iran retaliated by attacking oil infrastructure in several Middle Eastern countries and targeting ships passing through the Strait of Hormuz — which accounts for about 20% of global oil supply.

However, oil prices quickly retraced their early gains, closing lower on Monday amid widespread reports of major global economies planning how to respond to potential oil supply shocks. The U.S. and the G7 are believed to be considering releasing emergency oil reserves to mitigate inflationary pressures from the Iran conflict.

Despite this, oil prices have risen approximately 25% this year due to heightened tensions in the Middle East and concerns over supply disruptions.

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