New Delhi — Global oil prices dropped sharply on Tuesday, falling below $90 per barrel after Donald Trump suggested that the ongoing conflict in the Middle East could end soon.
Benchmark Brent Crude futures fell as much as 10.85 per cent during intraday trading, touching $88.22 per barrel compared to the previous close of $98.96. By around 11 a.m., prices had partially recovered to about $92.50, still down 6.44 per cent.
Meanwhile, WTI Crude Oil futures were trading at around $87.94 per barrel, registering a decline of more than 7 per cent. During the session, prices even dipped to $84.43 — nearly 30 per cent lower than the record high of $119.48 reached earlier.
The sharp fall came after Trump indicated that the US military campaign linked to the conflict involving Iran could conclude soon, raising hopes of easing geopolitical tensions that had recently pushed oil prices higher.
On Monday, crude prices had surged past $100 per barrel after disruptions to energy flows through the Strait of Hormuz — one of the world’s most crucial oil shipping routes — triggered concerns in global markets.
Earlier, Trump wrote on his social media platform Truth Social that the recent spike in oil prices was only a temporary consequence of efforts to counter Iran’s nuclear threat.
“Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A. and world safety and peace,” he posted.
The US President also warned Tehran against attempting to disrupt oil supplies through the Strait of Hormuz, emphasising that the United States maintains a strong naval presence in the region.
“We have a lot of Navy ships there,” he said while reiterating that the shipping route would remain secure.
Earlier this month, the United States carried out large-scale strikes on Iranian targets alongside Israel in an effort to weaken Tehran’s military and nuclear capabilities.
Meanwhile, in India, Finance Minister Nirmala Sitharaman said in Parliament of India on Monday that the recent rise in global crude oil prices is unlikely to significantly impact inflation in the country for now, as inflation remains close to the lower end of the target range.
With inputs from IANS