President Trump’s remarks quickly reduced fears that the conflict would disrupt oil supplies for a long time.

Brent crude fell by about 6% to nearly $92 per barrel, while US West Texas Intermediate dropped to around $88 per barrel. The sharp decline came only a day after prices surged close to $120 per barrel during peak fears of supply disruptions.

The earlier spike happened because markets feared that the expanding conflict in the Middle East could threaten oil shipments through the Strait of Hormuz. This narrow sea route carries roughly one-fifth of the world’s oil supply, making any disruption extremely sensitive for global markets.

However, sentiment changed quickly when Trump said the war against Iran could be “very complete” and might end soon. Traders interpreted the comment as a signal that the conflict might not damage oil supply for long, which triggered heavy selling in oil futures.

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Markets also reacted to reports that Trump was considering steps to stabilize energy markets. These include easing some oil sanctions and possibly releasing emergency oil reserves to increase global supply if needed.

The reaction was immediate across financial markets. As oil prices dropped, global stock markets rebounded because lower energy prices reduced pressure on businesses and inflation.

Despite the sudden fall, analysts warn that oil markets remain extremely volatile. Fighting in the region continues, and Iran has warned that it could block oil exports if attacks by the US and Israel continue