Global crude oil prices tumbled sharply on Thursday after US President Donald Trump indicated that negotiations to end the conflict with Iran were entering their final stages, raising hopes of a diplomatic breakthrough and easing concerns over potential supply disruptions in the energy market.
As of 5:58 p.m., Brent crude futures were trading down 3.51% at $94.38 per barrel after falling as low as $94.33 during the session. US West Texas Intermediate (WTI) crude declined even more sharply, dropping 4% to $92.18 per barrel.
The steep decline comes after weeks of elevated oil prices driven by geopolitical tensions in West Asia, with markets pricing in the risk of supply disruptions from one of the world's most critical oil-producing regions.
Investor sentiment shifted after Trump suggested that efforts to bring an end to the Iran conflict were progressing rapidly.
“We're in the middle of final negotiations to end the Iran war,” Trump said, expressing confidence that diplomatic discussions could soon result in a resolution to the conflict.
The comments came shortly after the US House of Representatives approved a war powers resolution aimed at limiting the president's authority over military action related to the conflict. Trump dismissed the move, describing the vote as "meaningless" and reiterating his confidence in ongoing diplomatic efforts.
Oil markets have remained highly sensitive to developments surrounding the Iran conflict due to concerns that an escalation could threaten energy infrastructure, shipping routes, and crude exports from the region. The possibility of a negotiated settlement prompted traders to unwind part of the geopolitical risk premium that had been built into prices over recent weeks.
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