Benchmark oil prices retreated toward $90 a barrel after US President Donald Trump suggested the conflict with Iran would end "very soon," following a surge past $100 on Monday. Analysts noted Trump provided little clarity on the timeline or details of the resolution.
Key points
- Oil surged past $100 a barrel on Monday before Trump's comments, which described the conflict as "very far ahead of schedule."
- The conflict caused a historic disruption to oil production, stemming from a near shutdown of the Strait of Hormuz and a slowdown in Middle East output.
- US crude settled at $94.77 a barrel, while Brent rose to $98.96 a barrel on Monday.
- Trump warned Iran of retaliation "twenty times harder" if it attempts to block the Strait of Hormuz.
- G7 finance ministers planned to meet to discuss a joint release of oil reserves to alleviate price pressure.
Why it matters
The conflict with Iran has caused the largest oil supply disruption in history, significantly raising gasoline prices, and market stability is contingent on the resolution of the Strait of Hormuz closure.
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