Global oil prices declined sharply on Tuesday after remarks from U.S. President Donald Trump suggested that the ongoing conflict in the Middle East may end sooner than previously anticipated.
Brent crude oil, against which Nigerian crude oil is priced, dropped by $6.75 or 6.8 percent to trade at $92.21 per barrel during mid-morning trading, while U.S. West Texas Intermediate (WTI) crude fell by $6.41, or 6.8 percent to $88.36 per barrel.
Both benchmark contracts experienced even steeper losses earlier in the session, with prices sliding by as much as 11 percent before partially recovering.
The decline followed a sharp rally in the previous session when oil prices surged to their highest level in more than three years. Brent had briefly traded above $119 per barrel on Monday as investors reacted to escalating geopolitical tensions and fears that the conflict could severely disrupt global oil supplies.
However, market sentiment shifted after Trump indicated that the military campaign against Iran might conclude earlier than initially projected.
In an interview with CBS News, the U.S. president stated that the conflict was already nearing completion and that the timeline for the operation had progressed faster than his earlier estimate of four to five weeks.
Trump’s remarks helped calm fears that the crisis could trigger extended supply interruptions in one of the world’s most critical energy regions.
Oil traders also responded to reports that Russian President Vladimir Putin had held discussions with Trump regarding proposals aimed at bringing the conflict to a quicker resolution.
According to information shared by a Kremlin aide, the conversation focused on potential pathways for a settlement that could reduce geopolitical tensions in the region.
The easing of immediate supply concerns triggered a swift reversal in the oil market, with investors unwinding positions that had previously priced in a significant geopolitical risk premium.
Energy analysts noted that the market reaction reflects how sensitive crude prices remain to developments affecting major oil-producing regions.
Suvro Sarkar, energy sector team lead at DBS Bank, said the previous surge in oil prices may have overstated the scale of supply disruptions, while Tuesday’s decline could represent an equally strong correction in the opposite direction.
He noted that despite the drop in Brent prices, certain Middle Eastern crude benchmarks, including Murban and Dubai grades, were still trading above $100 per barrel, suggesting that underlying supply risks remain.
Meanwhile, Iran’s Islamic Revolutionary Guards Corps responded to Trump’s remarks by stating that Tehran would determine the outcome of the conflict and warning that regional oil exports could be affected if attacks on Iranian territory continued.
In a statement reported by state media, the group said Iran would not allow oil shipments to move freely through the region if hostilities escalate further.
The Strait of Hormuz, located between Iran and Oman, remains a vital shipping route through which a significant share of the world’s oil exports passes.
Any prolonged disruption in the corridor could significantly impact global energy markets.
In response to rising price volatility, discussions are also reportedly underway within the United States government regarding potential measures to stabilize oil markets.
These include the possibility of easing certain sanctions on Russian crude exports or releasing additional volumes from strategic petroleum reserves.
Market participants also noted that G7 nations have indicated readiness to consider steps aimed at managing the recent surge in oil prices, although no concrete decision has been announced regarding the release of emergency reserves.
Despite the latest price swings, analysts at Goldman Sachs said the broader outlook for oil prices remains unchanged for now due to the fluid geopolitical environment.
The investment bank maintained its forecast for Brent crude to average around $66 per barrel in the fourth quarter of 2026, while projecting U.S. WTI prices to average about $62 per barrel during the same period.
As geopolitical developments continue to influence investor sentiment, oil markets are expected to remain highly volatile in the coming weeks.
