Global oil markets tumbled sharply on Monday after US President Donald Trump suggested that the conflict involving Iran, Israel and the United States could soon wind down, easing fears of a prolonged disruption to global crude supply.
Earlier today Brent crude surged to $119.85 per barrel as escalating geopolitical tensions rattled energy markets and raised concerns about supply flows through the . However, market sentiment shifted quickly after Trump indicated the military operation was progressing faster than expected.
Following the remarks, Brent crude plunged to about $89.87 per barrel, marking an intraday drop of roughly 30 percent from the day’s earlier high.
The former U.S. president also addressed the spike in oil prices in a social media post, arguing that the surge in crude prices is only temporary and will reverse once the perceived threat from Iran’s nuclear programme is eliminated.
“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace,” Trump wrote, adding that higher prices now are a necessary trade-off for long-term global security.
Trump also told the that he is “nowhere near” ordering U.S. ground troops into Iran, pushing back against speculation that Washington could launch a full-scale ground campaign to secure Tehran’s uranium stockpile.
However, the comments did little to fully calm market concerns about the broader direction of the conflict, with traders continuing to monitor geopolitical developments closely for any signs of escalation or a clear diplomatic path toward de-escalation.
Despite Monday’s sharp correction, analysts say oil markets remain highly sensitive to developments in the Middle East, with prices likely to remain volatile until the conflict’s trajectory becomes clearer.