Oil prices fell sharply on Tuesday as Donald Trump continues his war in Iran. Brent crude plunged more than 6% in early trading after fears of a prolonged Middle East supply crisis began to ease.
The dramatic slide comes just a day after prices surged close to $120 a barrel amid panic that the escalating conflict could choke off global oil supplies. Traders moved to cash in after Trump suggested the war could end sooner than expected, calming nerves across global energy markets. In Asian trading Brent crude dropped to around $92 a barrel, while US benchmark West Texas Intermediate slid to roughly $88. Despite the drop, oil remains far higher than before the conflict erupted, highlighting the intense volatility currently gripping global markets.
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Monday saw the price of oil achieve its biggest single-day gain in six years, with Brent crude surging by more than 20%.
Prices later eased afterDonald Trumpdescribed the Iran war as "complete", although the president warned Tehran would be hit "twenty times harder" if it attempted to block the Strait of Hormuz.
With energy markets still volatile, global stock markets will be closely watched in the coming days.
Major Middle East producers have cut oil output by up to 6.7 million barrels a day as shipping through the Strait of Hormuz slows dramatically.
According to reports, Saudi Arabia, Iraq, the United Arab Emirates and Kuwait have reduced production by as much as a third, trimming roughly 6% of global supply.
The cuts come as tankers avoid the region amid the escalating conflict, forcing producers to slow output as storage facilities fill up.
The disruption helped push oil close to $120 a barrel on Monday, before prices later pulled back.
Source: Daily Express :: World Feed
