President Donald Trump said on Tuesday that he expected oil prices to drop as soon as his administration’s military operations in Iran ends.
He made his comments in the Oval Office ahead of a meeting with German Chancellor Friedrich Merz.
Oil prices soared about 8 per cent to their highest since July 2024 on Tuesday, rising for a third session as the US-Israel war against Iran widened, disrupting oil and gas fuel shipments in the Middle East and heightening fears of a prolonged conflict.
Brent futures rose $6.07, or 7.8 per cent, to $83.81 a barrel at 10:35 a.m. EST (1535 GMT). US West Texas Intermediate increased $6, or 8.4 per cent, to $77.23.
That keeps both crude benchmarks in technically overbought territory for a second day and on track to close at their highest levels since July 2024 for Brent and January 2025 for WTI.
In addition, the premium of Brent over WTI rose to $8 a barrel, its highest since November 2022. Analysts have said when this premium rises over $4, it supports crude exports from the US
The US and Israeli air war against Iran has widened since Israel’s first attacks on Saturday. Israel has attacked Lebanon, and Iran has responded with strikes against energy infrastructure in Gulf countries and tankers in the Strait of Hormuz, through which a fifth of the world’s oil and liquefied natural gas typically passes. Tankers and container ships are avoiding the waterway after insurers cancelled coverage for vessels and global oil and gas shipping rates soared. Concerns increased after Iranian media reported on Monday that Iran will fire on any ship trying to pass through the Strait of Hormuz.
