(Bloomberg) — Oil prices tumbled after U.S. President Donald Trump signaled the war with Iran could be nearing an end, reversing an earlier rally that briefly pushed crude above $100/bbl amid ongoing disruptions to Middle East supply.
West Texas Intermediate (WTI) fell as much as 10% to $85.52/bbl following a highly volatile trading session Monday that saw oil swing in one of its widest intraday ranges since the early days of the COVID-19 pandemic.
Trump told CBS News he believed the conflict was “very complete, pretty much,” fueling speculation that hostilities could soon ease and potentially allow energy markets to stabilize.
Earlier in the session, crude had surged past $100/bbl as traders reacted to the near-closure of the Strait of Hormuz, a vital chokepoint that normally carries about one-fifth of global oil flows. The disruption has already forced several Persian Gulf producers — including Saudi Arabia, Iraq and the United Arab Emirates — to curtail output as exports stall and storage capacity tightens.
Oil markets have been experiencing extreme volatility as traders attempt to gauge both the duration of the conflict and the potential impact on global supply. WTI traded within a $38/bbl range during Monday’s session, while Brent crude fell roughly $20 from its intraday high to the close — the largest drop from a session peak on record.
Prices also retreated as major economies considered a coordinated release of strategic petroleum reserves to stabilize global supply.
Despite the pullback, tanker traffic through the Strait of Hormuz remains extremely limited, leaving markets focused on how quickly exports and production across the Persian Gulf could recover if tensions ease.
