Global oil markets saw a sharp sell-off on Thursday as crude prices plunged nearly 4%, rattled by fresh comments from former U.S. President Donald Trump regarding Iran that eased fears of escalating geopolitical tensions.
Brent crude and U.S. West Texas Intermediate (WTI) both slid significantly after Trump suggested that the situation surrounding Iran appeared to be calming, reducing concerns over potential supply disruptions from the Middle East — a region critical to global energy markets.
Just days earlier, oil prices had climbed on worries that rising tensions could threaten key shipping routes and oil production facilities. However, Trump’s remarks quickly shifted market sentiment, prompting traders to pull back from risk-driven positions and lock in profits.
Energy analysts say the sudden drop highlights how sensitive oil markets remain to political signals. “Geopolitical risk premiums can evaporate just as fast as they appear,” one analyst noted, adding that traders are closely watching diplomatic developments alongside supply and demand data.
The decline in oil prices also brought relief to broader financial markets, easing inflationary pressure concerns that had been building as energy costs surged earlier in the week. However, experts warn that volatility is likely to persist, as tensions in the region remain unresolved and any unexpected developments could send prices swinging again.
For now, Trump’s comments have cooled market nerves — but in the world of oil, sentiment can change in a single headline.
