- Oil prices fell sharply after Donald Trump suggested the Iran conflict may end soon.
- Brent crude dropped from nearly $120 to about $90 a barrel.
- Gas prices in the UK also slid more than 10 per cent.
Oil prices dropped sharply after US President Donald Trump suggested the Iran conflict could come to an end sooner than feared, easing some of the panic that had gripped global energy markets.
Crude prices had surged to almost $120 a barrel on June 9 amid concerns that the war could disrupt oil supplies from the Middle East for an extended period. By June 10, prices had pulled back significantly, trading around $90 a barrel.
The sudden reversal offered some relief to financial markets. European stocks rebounded, with London’s FTSE 100 climbing 1.9 per cent as investors reacted to the easing pressure on energy prices.
Gas prices also moved lower. UK prices for month-ahead delivery dropped by more than 10 per cent, falling to about 123p per therm, well below the 171p peak reached on June 9.
Even so, oil prices remain well above the levels seen before the conflict began, suggesting markets are still on edge.
Trump signals conflict may be short
Trump told reporters he believed the fighting could be short-lived.
“I think the war is very complete, pretty much,” he reportedly said during a news conference in Florida.
He added that the military action had been intended as a limited operation. “We took a little excursion because we felt we had to do that to get rid of some evil. Then, I think you'll see it's going to be a short-term excursion,” Trump reportedly said in a news report.
However, he also warned Iran against interfering with shipping through the Strait of Hormuz, a key route for global oil supplies.
“If Iran does anything that stops the flow of oil within the Strait of Hormuz, they will be hit by the United States of America twenty times harder than they have been hit thus far,” Trump wrote on social media, as quoted in a news report.
Iran responded sharply. The Islamic Revolutionary Guard Corps said that “in response to Trump’s nonsense” its forces would not allow “the export of a single litre of oil from the region”, reportedly said in a news report.
Energy markets remain on edge
Despite the drop in prices, analysts suggest the energy market is far from stable.
Brent crude briefly fell below $84 a barrel before settling around $90.21 during trading on June 10, reflecting how quickly sentiment is shifting.
Alberto Bellorin, founder and managing director of oil and gas investment firm InterCapital Energy, said the latest price drop had allowed traders a brief moment of relief.
The fall had given markets a chance to “exhale”, but the energy sector remains locked in a “total tug-of-war”, Bellorin reportedly said in a news report.
According to him, oil trading is likely to stay volatile. Prices could spike again if the conflict escalates, but may fall just as quickly if signs of de-escalation emerge.
For now, markets appear to be reacting to every new signal from the region, with traders watching closely for any shift that might threaten the flow of oil from the Middle East.
