Global oil prices fell sharply Tuesday, retreating after a recent surge as U.S. President Donald Trump suggested the Middle East conflict could end sooner than expected.
Brent crude dropped 6.8% to $92.21 per barrel, while U.S. West Texas Intermediate fell 6.8% to $88.36, after both benchmarks hit multi-year highs.
Prices had earlier declined as much as 11% intraday, reflecting fading fears of prolonged disruptions to global oil supply.
Trump said the war against Iran appeared “very complete” and progressing faster than expected, easing immediate market concerns.
Analysts warned the market reaction may be exaggerated, noting key Middle Eastern grades such as Murban and Dubai crude remain above $100 per barrel.
Iran’s Revolutionary Guards responded defiantly, stating Tehran could block all regional oil exports if U.S. and Israeli attacks continue.
Meanwhile, Washington is reportedly considering easing sanctions on Russian oil and releasing emergency reserves to stabilize energy markets.
Despite the volatility, Goldman Sachs maintained its 2026 oil forecast, projecting Brent at $66 and WTI at $62 per barrel in the fourth quarter.
