Crude prices fell on Wednesday as investors weighed U.S. President Donald Trump’s willingness to exit the Iran conflict within weeks, even as the Strait of Hormuz remains largely closed.
U.S. West Texas Intermediate crude for May delivery was down 1.89% at $99.46 U.S. a barrel Wednesday while Brent contract for June delivery was down 1.91% to trade around $101.98 a barrel.
The global oil benchmark surged more than 60% last month, in its strongest monthly rally dating back to 1988. The May contract settled about 5% higher on Tuesday at $118.35 per barrel.
Oil prices dropped after Trump said Tuesday evening that he expected the U.S. military to wind down operations against Iran in “two or three weeks” and appeared to be declaring victory.
Trump also dismissed the idea of having to reach a negotiated deal to end the war, saying that “Iran doesn’t have to make a deal ... it’s a new regime. They are much more accessible.” He also asserted that he had stopped Iran from gaining a nuclear weapon.
Later Tuesday, White House spokesperson Karoline Leavitt said in a post on X that Trump will deliver a national address to provide an “important update” on Iran at 9 p.m. ET Wednesday.
Iran has effectively halted shipments through the Strait of Hormuz, a critical waterway connecting the Persian Gulf and the Gulf of Oman that typically saw 20% of global oil flows before the war broke out.
While global markets await Trump’s comments later Wednesday, military hostilities continue. Iran’s Revolutionary Guards said it would start attacking U.S. companies in the region from Wednesday, listing 18 companies including Google (NASDAQ:GOOGL), Microsoft (NASDAQ: MSFT), Apple (NASDAQ:AAPL), Intel (NASDAQ:INTC), IBM (NYSE:IBM), Tesla (NASDAQ:TSLA) and Boeing (NYSE:BA).
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