Oil prices declined sharply on Wednesday after Donald Trump said negotiations with Iran were in the ‘final stages.’ The US President’s latest remarks eased concerns over possible supply disruptions through the Strait of Hormuz. Markets also reacted quickly to the change in sentiment.
West Texas Intermediate crude fell about 4% to $99 per barrel, marking its steepest single-day drop since April 17. Brent crude declined 5% to $105 per barrel. The fall came after recent gains linked to tensions in West Asia began to unwind.
Market sentiment improved after reports from financial data provider LSEG showed three oil tankers carrying crude to China and South Korea had passed through the Strait of Hormuz without disruption. The route handles nearly one-fifth of global oil trade and remains sensitive to geopolitical tension.
Speaking at Joint Base Andrews, Trump said the US was in the ‘final stages’ of talks with Iran. He added, ‘We’ll see what happens,’ while warning that failure could lead to tougher steps. ‘We’re going to do some things that are a little bit nasty, but hopefully that won’t happen,’ he said.
At a separate event, he said, ‘Everything's gone. Their navy's gone. Their air force is gone. Just about everything.’
Reports also indicated that NATO officials were discussing possible measures to secure shipping through the Strait of Hormuz if disruptions continue into early July. The development reflects ongoing uncertainty about energy supply routes despite recent easing of prices.
Oil prices remain highly sensitive to political signals from the US-Iran talks. The latest decline shows how quickly risk premiums can ease when diplomatic progress is suggested. At the same time, the dependence on the Strait of Hormuz keeps the market exposed to sudden shifts in sentiment.
Also Read: Crude Oil Prices Fall by $1.52 as US-Iran Peace Talks Raise Supply Expectations