WASHINGTON (Web Desk) – Global oil prices recorded a sharp decline on Wednesday after optimistic remarks by US President Donald Trump regarding progress in negotiations with Iran eased concerns in international energy markets.
According to international media reports, the price of Brent crude oil fell by more than five per cent, dropping to around $105 per barrel, while US crude prices also witnessed a significant decrease.
Speaking to journalists, President Trump said negotiations with Iran had entered the final stages and expressed hope that an agreement could soon be reached. His comments temporarily reassured investors, reducing pressure on global oil markets.
Despite the decline, analysts warned that potential disruptions in the Strait of Hormuz, ongoing tensions in the Middle East and uncertainty surrounding Iran continue to pose major risks to global energy supplies.
Reports also suggested that limited movement of some vessels through the Strait of Hormuz provided short-term relief to the market, helping calm fears over supply disruptions.
International financial institutions cautioned that if negotiations between Washington and Tehran fail or regional military tensions escalate again, oil prices could surge back to between $120 and $200 per barrel.
Global oil markets have remained volatile throughout the year due to geopolitical tensions involving Iran and broader instability in the Middle East.