Oil prices fall sharply below $90 a barrel as Middle East tensions ease

Global oil prices fell sharply on Tuesday, slipping below $90 a barrel after US President Donald Trump suggested that the conflict in the Middle East could end soon.

Brent crude futures dropped as much as 10.85 per cent during trading, touching an intraday low of $88.22 per barrel compared with the previous close of $98.96. By around 11 a.m., prices had partially recovered to $92.50, still down 6.44 per cent.

Similarly, crude oil futures were trading at $87.94 per barrel, marking a fall of more than 7 per cent. During the session, prices briefly slid to $84.43, representing a decline of about 29.33 per cent from the record high of $119.48 reached earlier.

The sharp fall in prices followed comments from the US president indicating a possible de-escalation in the conflict involving Iran.

On Monday, oil prices had surged above $100 per barrel amid concerns that tensions in the region could disrupt energy shipments through the Strait of Hormuz, a vital global oil transit route.

Earlier, Trump had said on his social media platform that higher oil prices were a temporary consequence of confronting Iran’s nuclear ambitions. He suggested that prices would fall rapidly once the threat from Iran’s nuclear programme was neutralised.

He also indicated that the US military campaign against Iran would conclude “very soon”, describing victory as the point when Tehran no longer possesses the ability to develop weapons that could threaten the United States, Israel or their allies.

Trump additionally warned Iran against attempting to interfere with shipping through the Strait of Hormuz, emphasising that the United States maintains a strong naval presence in the area to safeguard global energy flows.

The United States, in coordination with Israel, carried out major strikes earlier this month targeting Iranian military facilities and infrastructure linked to its nuclear programme.

Meanwhile, Finance Minister Nirmala Sitharaman told Parliament on Monday that the recent surge in global crude oil prices is not expected to significantly affect inflation in India for the time being. She noted that inflation currently remains near the lower end of the Reserve Bank of India’s target range.

With IANS inputs