Global oil prices fell sharply on Tuesday after reaching their highest levels in more than three years, as comments from US President Donald Trump raised expectations that the ongoing conflict in the Middle East could end sooner than anticipated.
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International benchmark Brent crude dropped $6.51, or about 6.6%, to $92.45 a barrel, while West Texas Intermediate (WTI) crude declined $6.12, or roughly 6.5%, to $88.65 during early trading.
The decline followed a dramatic surge on Monday when oil prices briefly climbed above $100 per barrel amid fears that the expanding conflict involving the United States, Israel and Iran could severely disrupt global energy supplies. During the session, Brent and WTI both touched highs near $119 per barrel, their strongest levels since mid-2022.
Market sentiment shifted later in the day after Russian President Vladimir Putin held a phone call with Trump and reportedly proposed ideas for a quick settlement to the conflict with Iran, according to the Kremlin.
In an interview with CBS News, Trump said the war with Iran appeared to be nearing completion and suggested the campaign was progressing faster than initially expected.
Despite the drop in prices, tensions remain high in the region. Iran’s powerful military branch, the Islamic Revolutionary Guard Corps (IRGC), warned that Tehran would determine how the conflict ends and threatened to halt oil exports from the region if US and Israeli attacks continue.
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Meanwhile, oil markets are also reacting to reports that Washington may consider easing certain oil sanctions on Russia and releasing emergency crude reserves to stabilise prices.
Supply concerns persist as several Gulf producers reduce output due to shipping disruptions linked to the conflict. Iraq has reportedly cut production at major southern oilfields, while Saudi Arabia and Kuwait have also begun trimming output. Analysts warn that oil prices are likely to remain volatile in the coming weeks.