Oil prices fell sharply in early Asian trade on Thursday after U.S. President Donald Trump said that killings in Iran’s nationwide protests were subsiding, easing fears of a U.S. military strike and potential supply disruption in the Middle East. This change in sentiment helped calm markets and reversed much of the recent rally driven by geopolitical concerns.
Brent crude futures dropped about $1.67, or 2.5 percent, to around $64.85 a barrel, while U.S. West Texas Intermediate crude fell roughly $1.54, or 2.5 percent, to $60.48 per barrel. Both benchmarks had climbed over one percent in the previous session but gave back most of those gains following Trump’s remarks.
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Market analysts said selling pressure increased as traders interpreted the U.S. president’s comments to mean a lower risk of imminent military action against Iran, which had been pushing oil prices higher. Rising U.S. crude inventories also added to the bearish sentiment, softening the recent bullish trend.
According to energy market data, U.S. crude stocks rose by 3.4 million barrels last week, exceeding expectations for a decline, while gasoline inventories also increased. These larger-than-expected inventory builds reflected softer demand or higher supply, adding further pressure on prices.
Read more : Oil prices rise on supply disruption fears in Venezuela and Iran
Additionally, Venezuela has reportedly started reversing previous production cuts and resumed crude exports, expanding global supply prospects. Traders are closely monitoring how these supply developments and geopolitical tensions will balance against future demand forecasts.
Despite the price drop, analysts warn that geopolitical risks remain elevated, and unexpected events could still influence oil markets. For now, Brent and WTI crude are expected to trade within a moderate range until new significant market drivers emerge.