Brent crude fell over $20 per barrel from its intraday high to slide below the mark of $100 per barrel on Monday, after US President Donald Trump said that the war in Iran will end very soon.The reversal seen in Brent, from Monday’s intraday high of $119.5 per barrel, is the largest ever drop from an intraday high to its closing price for the commodity.
Futures on the West Texas Intermediate, or US crude plunged as much as 10% to $85.02 a barrel, having also crossed the mark of $115 per barrel on Monday, taking its trading range to $38, the widest since the pandemic in 2020, when prices had briefly turned negative as well.
At a news conference in Florida, Trump remarked that he plans on waiving oil-related sanctions and have the US Navy escort tankers through the Strait of Hormuz. “We’re looking to keep the oil prices down,” Trump said. “They went artificially up because of this excursion.”
There is still no clarity on whether ships are passing through the Strait of Hormuz, through which 20% of the global oil supply flows. The war has led to major oil producers in the Gulf, including Saudi Arabia, curb output as they run out of storage space.The war not only led to a surge in oil prices, but also of other energy products, including natural gas and gasoil. US retail gasoline prices have jumped to the highest level since August 2024.Trump, however, did not offer additional specifics on the plan to escort tankers or waive oil-related sanctions, beyond acknowledging he had discussed the topic with Russian President Vladimir Putin in a phone call earlier Monday.Oil prices had already begun to stage a pullback during the course of the day itself on Monday after the Financial Times first reported about the G7 group of nations meeting to discuss releasing emergency reserves. France, the current group President, stated that the G7 is “not there yet” to agree to a release, though they are closely monitoring the situation in the energy markets.(With Inputs From Agencies)
