Oil prices fell significantly on Monday following President Donald Trump’s remarks indicating that military conflict with Iran is nearing its conclusion and that the U.S. may intervene in the Strait of Hormuz. The market reacted to signals suggesting reduced risks to supply routes in the region.
In a historical reversal in extended trading oil prices fell around 6% to around $90 a barrel. As of early trading sessions of the Asian market on Tuesday, the international benchmark Brent crude fell 10.5% to $88.61 per barrel, while the West Texas Intermediate dropped 10.1% to $85.19 a barrel.
During a phone interview with CBS News, President Trump stated that hostilities with Iran are almost over and ahead of previous expectations. He described Iran’s current situation as lacking military capacity, saying that the country has no operating navy or air force and limited communication ability. Trump also noted that the conflict was being resolved faster than his initial four-to-five week projection.
The President mentioned the U.S. might consider asserting control over the Strait of Hormuz, a vital passage for global oil shipments, to ensure maritime safety. He emphasized that Iran’s military resources had been largely exhausted.
