Oil prices fell sharply by more than 13 percent on Tuesday after reaching their highest levels since 2022 in the previous trading session, following remarks by United States President Donald Trump suggesting that the war with Iran could end soon.
Brent crude futures dropped by $12.46, or 12.6 percent, to $86.50 per barrel by 12:58 p.m. EDT (16:58 GMT). U.S. West Texas Intermediate (WTI) crude also declined by $12.24, or 12.9 percent, to $82.53 per barrel.
The steep decline came after oil prices surged dramatically a day earlier, with both global benchmarks climbing above $119 per barrel amid fears that the escalating conflict involving Iran could disrupt global energy supplies.
Concerns about potential supply disruptions had intensified after Saudi Arabia and other major oil producers implemented output cuts, raising fears of tighter global supply.
Market sentiment shifted after President Trump said the conflict with Iran could end soon, easing immediate fears of a prolonged disruption to oil supplies in the Middle East.
However, analysts note that oil markets remain highly volatile as developments in the conflict continue to influence global energy prices.
