Global Oil Prices Dip as Trump Signals Potential End to Iran Conflict

Tokyo. Crude oil prices fell in the global market after US President Donald Trump signaled that the conflict with Iran could end soon. On Thursday morning, Brent crude prices dropped by $1.16 to $100 per barrel, while US West Texas Intermediate fell by $1.41 to $98.71 per barrel.

Investor optimism surged after Trump told Reuters that the US would end the war with Iran 'soon.' Market analysts suggest that the significant drop in oil prices is driven by expectations that Trump's upcoming address will outline a softer policy of de-escalation.

IG Markets analyst Tony Sycamore noted that selling pressure has increased in the market on hopes that the Iran conflict will eventually conclude. However, he warned that risks remain, as a US withdrawal does not guarantee the security and free movement of vessels through the Strait of Hormuz.

Regional tensions have not yet subsided. Just on Wednesday, Iran fired a cruise missile at a QatarEnergy-chartered oil tanker within Qatari waters. Such incidents continue to increase risks for maritime shipping.

Meanwhile, the head of the International Energy Agency has warned that the European economy, which has been shielded by pre-war agreements, will begin to feel the direct impact of oil supply shortages starting in April.

Experts believe that oil price volatility will persist until a formal ceasefire agreement is reached and energy infrastructure is secured.