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Global oil prices declined on Wednesday after US President Donald Trump reiterated his assertion that the war with Iran will end “very quickly.”
Brent crude oil futures dropped 45 cents, or 0.4 per cent, to $110.83 a barrel, while US West Texas Intermediate futures fell 27 cents, or 0.3 per cent, to $103.88.
The market dip extended losses from the previous session, which had been triggered by Vice President JD Vance’s announcement that Washington and Tehran were making genuine progress in diplomatic negotiations to prevent further military escalation.
Despite the temporary relief in pricing, energy investors remain highly cautious due to mixed messaging from the White House.
While President Trump publicly predicted a rapid resolution to the conflict, he concurrently warned US lawmakers that he had recently come within an hour of launching fresh airstrikes and would not hesitate to attack if a deal fell through.
Financial analysts emphasise that crude prices are likely to stay elevated long-term, as a successful peace agreement will not instantly restore global supply lines to their pre-war capacities.
The underlying driver of the market’s anxiety remains the effective closure of the Strait of Hormuz, a critical maritime chokepoint that normally accommodates one-fifth of the world’s petroleum distribution.
According to the International Energy Agency, the conflict represents the largest oil supply disruption in history, forcing nations to heavily deplete their strategic reserves.
Reflecting this strain, the American Petroleum Institute reported a fifth consecutive weekly drop in US crude inventories, underscoring the tight global market as traders await official government inventory data.
