Key facts
- Oil prices fell sharply Tuesday after US President Donald Trump said the war with Iran would end "very soon."
- Brent crude settled at $87.80 per barrel, down 11.28%, and WTI settled at $83.45 per barrel, down 11.94%.
- Saudi Aramco warned of "catastrophic consequences" for oil markets if disruptions to the Strait of Hormuz continue.
- The IEA will meet to assess security and market conditions, deciding whether to release emergency oil stockpiles.
- The G7 is prepared to release oil reserves to support global energy markets if needed.
- President Trump said Iran was probably responsible for an aerial attack on Saudi Arabia's East-West pipeline.
Oil prices experienced a sharp decline on Tuesday following statements by US President Donald Trump indicating that the war with Iran would conclude "very soon." This sentiment, however, contrasts with remarks from US Defense Secretary Pete Hegseth, who stated the conflict would persist until the enemy is "totally and decisively defeated."
Brent crude, the global benchmark, settled down 11.28% at $87.80 per barrel, while the US benchmark, WTI, fell 11.94% to $83.45 per barrel. These prices are significantly higher than those recorded before the conflict began on February 28.
Saudi Aramco, the world's largest oil exporter, issued a warning about the "catastrophic consequences" for global oil markets if shipping through the vital Strait of Hormuz remains disrupted. CEO Amin Nasser described the current situation as the biggest crisis the region's oil and gas industry has faced.
In response to market volatility and supply concerns, the International Energy Agency (IEA) announced that its member countries would convene to assess the security of supply and market conditions, determining whether to release emergency oil stockpiles. Additionally, the Group of Seven (G7) major economies affirmed their readiness to support global energy markets through strategic reserve releases if necessary.
Trump also said on Saturday that Iran was probably responsible for an aerial attack on Saudi Arabia that shut down its East-West pipeline, one of the kingdom's main routes for exporting crude while bypassing the Strait of Hormuz. He added that Yemen's Iran-aligned Houthis had indicated they did not want the United States to become directly involved in the conflict.