Oil prices fell on Wednesday after earlier gains, as uncertainty surrounding the Middle East conflict unsettled investors. The market reacted after Donald Trump suggested the U.S.–Israeli war with Iran could soon end.
Front-month Brent crude for June dropped $1.85, or 1.8%, to $102.12 a barrel by 1414 GMT after touching a session low of $98.35. West Texas Intermediate crude for May also declined $1.07, or about 1.1%, to $100.31 per barrel.
Prices had climbed earlier in the session but reversed as traders locked in profits amid geopolitical uncertainty. Analysts said Trump’s comments hinting at a potential end to the conflict contributed to the market pullback.
The head of the International Energy Agency, Fatih Birol, warned that disruptions to Middle East oil supply are expected to worsen in April. He said the closure of the Strait of Hormuz is already affecting energy shipments to Europe.
In a social media post, Trump said Iran’s new leader had requested a ceasefire but insisted the U.S. would act until the Strait of Hormuz is “open, free and clear.” He added that U.S. forces could leave Iran quickly if necessary, though he gave no timeline.
The remarks followed Trump’s comments on Tuesday that the military campaign could end within two to three weeks, even without a formal deal with Iran.
However, analysts caution that even if the Strait reopens, global oil flows may take time to normalize. Clearing the backlog of vessels and restoring production and exports could happen gradually rather than immediately.
The Strait of Hormuz, a key shipping route linking Gulf producers to global markets, carries roughly 20% of the world’s oil and liquefied natural gas trade.
Meanwhile, production from the Organization of the Petroleum Exporting Countries fell by 7.5 million barrels per day in March as storage filled up due to export disruptions.
Supply constraints have pushed Middle Eastern crude prices higher, with industry sources expecting Saudi Arabia to raise its May official selling prices for crude to Asian buyers to record levels.