Oil Prices Drop Amid Trump's Iran War Comments and Supply Concerns Oil prices fell sharply on Wednesday as U.S. President Donald Trump reiterated his claim that the Iran war would end "very quickly," though market participants remained cautious about the potential outcomes of ongoing peace talks. Brent crude futures dropped 5% to $105.61 per barrel, while U.S. West Texas Intermediate (WTI) futures fell nearly 25% to the same level, marking their largest daily declines in percentage and absolute terms in two weeks. The drop followed a previous 1% decline on Tuesday, which occurred after U.S. Vice President JD Vance reported progress in U.S.-Iran negotiations. However, Trump’s insistence that the U.S. might need to strike Iran again and his claim of being "an hour away" from ordering an attack before its postponement added uncertainty to the market. Analysts noted that even if a peace agreement is reached, oil prices could still rise due to the prolonged disruption of Middle Eastern supply. LSEG research analyst Emril Jamil highlighted that supply levels are unlikely to return to pre-war conditions immediately, leaving markets vulnerable to further volatility. Citi analysts had previously predicted Brent crude could reach $120 per barrel in the near term, citing underpricing of the risk of prolonged supply disruptions. Wood Mackenzie, meanwhile, estimated that prices could approach $200 per barrel if the Strait of Hormuz remains closed for the remainder of the year. The conflict has significantly reduced oil shipments through the Strait of Hormuz, a critical chokepoint for global energy flows. On Wednesday, three supertankers carrying oil bound for Asian markets crossed the strait after waiting in the Gulf for over two months, with 6 million barrels of Middle East crude still stranded.#donald_trump #wood_mackenzie #jd_vance #citi #emril_jamil
