Global Oil Prices Fall As President Trump Signals Possible Iran Deal

Global crude oil prices declined nearly 1 per cent for the second consecutive session on Wednesday after US President Donald Trump indicated that the conflict with Iran could end quickly, raising hopes of a possible diplomatic agreement between Washington and Tehran.

International benchmark Brent crude futures slipped around 0.9 per cent, or nearly one US dollar, to 110.28 US dollars per barrel.

US West Texas Intermediate crude futures also declined by about 1 per cent to 103.12 US dollars per barrel.

Both benchmarks had already recorded losses in the previous trading session following signs of progress in discussions between the United States and Iran.

Market analysts said investors continued to monitor developments in West Asia closely as uncertainty surrounding peace negotiations and supply disruptions kept oil markets volatile.

Experts noted that while short-term sentiment remained cautiously bullish, traders were watching whether the United States and Iran could reach common ground and secure a lasting agreement.

Speaking at the annual Congressional Picnic, President Donald Trump said the conflict with Iran would end ‘very quickly’ and claimed Tehran wanted a deal with Washington. He predicted a sharp fall in global crude oil prices due to abundant supply and said diplomatic progress could help stabilise energy markets despite ongoing geopolitical tensions.

Despite the recent decline in prices, Citigroup projected Brent crude could rise to 120 US dollars per barrel in the near term.

Morgan Stanley described the oil market as being in ‘a race against time’ and warned that price pressures could intensify if the Strait of Hormuz remained closed into June.

The brokerage added that higher US crude exports and weaker Chinese imports had so far helped cushion the market from a deeper supply shock.

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