Global oil prices plunged more than 13 percent on Tuesday after surging to their highest levels since 2022 in the previous trading session, following comments by U.S. President Donald Trump suggesting that the war with Iran could end soon.
Brent crude futures fell by $12.46, or 12.6 percent, to $86.50 a barrel by 12:58 p.m. EDT (16:58 GMT). U.S. West Texas Intermediate (WTI) crude also dropped $12.24, or 12.9 percent, to $82.53 per barrel.
The sharp decline came after oil prices had spiked the previous day, with both global benchmarks rising above $119 a barrel amid fears that the escalating conflict involving Iran could disrupt global energy supplies.
Concerns over potential supply shortages had intensified after Saudi Arabia and other major producers implemented output cuts, increasing worries about tighter global supply.
Market sentiment shifted after President Trump indicated that the conflict with Iran could end soon, easing immediate fears of a prolonged disruption to oil supplies in the Middle East.
However, analysts say oil markets remain highly volatile as ongoing developments in the conflict continue to influence global energy prices.