Azernews.Az

Akbar Novruz

Read more

Oil prices declined on Tuesday after reaching their highest level in more than three years in the previous trading session, as signals from the United States about a possible end to the war in the Middle East eased market concerns about prolonged supply disruptions.

AzerNEWS reports that the drop followed remarks by US President Donald Trump, who suggested that the conflict in the region could end soon, calming fears about a long-term impact on global energy supplies.

As of 08:45 Baku time, Brent crude futures fell by $4.17, or 4.2%, to $94.79 per barrel on the London Stock Exchange. US West Texas Intermediate (WTI) crude also declined by $3.81, or 4%, to $90.96 per barrel. Earlier in the day, both benchmark contracts had dropped by as much as 11%.

On Monday, oil prices surged above $100 per barrel, reaching their highest level since mid-2022. The sharp increase was driven by concerns that escalating tensions with Iran and potential production cuts by major producers such as Saudi Arabia could disrupt global supplies.

Prices later retreated after Russian President Vladimir Putin reportedly held a phone call with Trump and offered to help resolve the conflict quickly.

Analysts also noted that the possibility of sanctions relief on Russian oil exports and the potential use of strategic petroleum reserves by G7 countries sent signals to markets that global supplies could continue.

Meanwhile, tensions surrounding the Strait of Hormuz, one of the world’s most critical oil transit routes, remain high. Iran’s Islamic Revolutionary Guard Corps (IRGC) warned that it would not allow “even a liter of oil to be exported” from the region if US and Israeli attacks continued.

Trump also issued a strong warning to Tehran in a post on his social media platform Truth Social, stating:

The statement underscores rising geopolitical tensions in the region, even as markets react to signals that diplomatic efforts could potentially de-escalate the conflict.