Global oil prices declined sharply on Wednesday after United States President Donald Trump suggested that the ongoing conflict involving Iran could be resolved sooner than previously expected, easing some concerns over prolonged supply disruption in the Middle East.
As of about 4:10 p.m. West Africa Time, Brent crude was trading around $106.9 per barrel, down by nearly 3.9 per cent, while U.S. West Texas Intermediate crude fell to approximately $100.4 per barrel, representing a decline of about 3.6 per cent.
The market downturn followed renewed comments from Trump indicating that the Iran conflict could end “very quickly,” despite lingering uncertainty surrounding ongoing diplomatic negotiations and the broader security outlook in the region.
The latest decline marks one of the steepest single-day drops recorded in the oil market in recent weeks, reversing part of the sharp gains triggered by fears of supply disruption following tensions around the Strait of Hormuz and wider Middle East instability.
Analysts, however, said oil prices remain highly sensitive to geopolitical developments as traders continue to assess the risk of prolonged supply shortages.
Energy market observers noted that even if diplomatic progress is achieved, supply flows from the region may not immediately return to pre-conflict levels, keeping underlying market concerns intact.
Recent disruptions in shipping activity through the Strait of Hormuz, one of the world’s most important oil transit routes, have continued to affect global crude supply movements.
Although some vessels resumed transit through the corridor this week, shipping activity remains significantly below normal levels recorded before the conflict escalated.
Industry analysts also warned that global inventories could tighten further if supply interruptions persist over an extended period.
Several market forecasts have projected the possibility of renewed upward pressure on crude prices should Middle East exports remain constrained.
Some analysts expect Brent crude prices to move toward the $120 per barrel range in the near term if supply risks continue, while more aggressive projections have suggested prices could rise substantially higher in the event of a prolonged closure or severe restriction along the Strait of Hormuz.
Meanwhile, oil-producing countries and energy companies are increasingly relying on commercial reserves and strategic inventories to offset supply gaps created by the disruptions.
The latest market movement also comes as some countries continue to reassess sanctions and supply arrangements involving Russian crude amid tightening global energy balances.
Despite Wednesday’s sharp decline, traders and analysts said the oil market remains vulnerable to sudden swings as geopolitical developments continue to shape investor sentiment and global supply expectations.