Crude Oil Prices Slip Below $90 as Trump Signals End to Iran War and G7 Stands Ready

The catalyst? U.S. President Donald Trump signalled that the conflict with Iran was closer to conclusion than markets had anticipated. 

By the afternoon session, US crude futures had settled roughly 8.99% lower at US$86.25, while Brent crude slid to US$88.73. The dramatic reversal erased weeks of gains built on supply disruption fears, leaving investors questioning the sustainability of the recent risk premium. 

Crude Oil Price  

Why Oil Fell More Than 5% Below $90 

1. Trump Declares the Iran War “Nearing its End” 

After a weekend of heavy strikes, the President told CBS News that the US had “very‑close to completing” its objectives against Iran. Markets had been pricing a protracted conflict that could keep the Strait of Hormuz closed for months. His comments suggested a rapid de‑escalation, instantly stripping the “fear premium” from oil prices. 

2. G7 Ready to Tap Strategic Petroleum Reserves 

In an emergency virtual meeting, G7 finance ministers and the International Energy Agency pledged to release strategic reserves if prices pushed above $150 a barrel.  

The mere prospect of a coordinated supply injection capped traders’ expectations and helped the rapid unwind of the price rally. 

3. US‑Russia Talks and Easing of Sanctions 

A phone call between Trump and Vladimir Putin preceded reports that the US was considering lifting sanctions on hundreds of millions of barrels of stranded Russian oil.  

By signalling additional supply could re‑enter the market, the Treasury’s stance further undercut the bullish sentiment. 

4. Market Mechanics: Panic Buying and Technical Selling 

Brent briefly hit $119.50 on frantic buying driven by fear of a prolonged blockade. Once the President’s remarks hit the wires, many positions were liquidated, triggering stop‑loss orders and a cascade of technical sells that pushed both Brent and WTI back into the $85‑$90 band. 

Read More: India Invokes ESMA Powers, Directs Refiners to Increase LPG Production Amid Supply Risks! 

Conclusion 

Oil prices are currently caught between rapidly easing geopolitical risk and the lingering memory of a supply shock. The President’s optimistic assessment of the Iran war, combined with G7 readiness to stabilise the market, has removed much of the premium that drove prices above $115. Traders should brace for further swings as policy signals continue to evolve. 

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