Oil prices plunged more than 13 percent on Tuesday after surging to their highest levels since 2022 in the previous session, as United States President Donald Trump predicted that the war with Iran could end soon.
Brent crude futures fell by $12.46, or 12.6 percent, to $86.50 a barrel by 12:58 p.m. EDT (16:58 GMT). U.S. West Texas Intermediate (WTI) crude also dropped $12.24, or 12.9 percent, to $82.53.
The sharp decline followed a dramatic surge in oil prices a day earlier, when both global benchmarks climbed above $119 a barrel amid fears that the escalating conflict involving Iran could disrupt global energy supplies.
Concerns over supply disruptions had intensified after Saudi Arabia and other major producers implemented output cuts, raising fears of tighter global supply.
Market sentiment shifted after Trump said the conflict with Iran could end soon, easing immediate fears of a prolonged disruption to oil supplies in the Middle East. However, analysts say oil markets remain highly volatile as developments in the conflict continue to influence global energy prices. (Newswire)
