economy
Oil prices dive as Trump says Iran war will end ‘very soon’
Oil prices fell sharply Tuesday after US President Donald Trump said the war with Iran would be over “very soon,” though they remain volatile and well above their levels before the conflict started.
TL;DR
- Oil prices fell sharply Tuesday after President Trump stated the war with Iran would end 'very soon'.
- Brent crude slid 7% to $91.8 a barrel, and WTI fell over 6% to around $88.6 a barrel.
- Prices had surged above $100 a barrel on Monday for the first time since Russia's 2022 invasion of Ukraine.
- Saudi Aramco warned of 'catastrophic consequences' for oil markets if flows through the Strait of Hormuz are disrupted.
- The G7 is prepared to release oil reserves if necessary to support global energy markets.
- Strategic reserves are estimated at around 1 billion barrels, potentially capping prices if the war is short.
- Middle East producers are cutting output due to export and storage issues, raising concerns about future production recovery.
- Saudi Aramco CEO Amin Nasser stated the company could ramp up production in days if needed.