Oil Prices Plunge Over 3% After Trump Eases Iran Tensions, Market Volatility Falls

Global oil prices fell sharply on Thursday, dropping over 3% after U.S. President Donald Trump’s remarks eased fears of a potential conflict with Iran. Brent crude fell about 3.3% to $64.3 a barrel, while WTI crude dropped roughly 3.3% to $60 a barrel.

Traders had previously driven up prices due to geopolitical tensions in the Middle East, including fears of U.S.-Iran confrontation and disruptions to critical oil shipping routes. Trump’s comments signaling reduced risk prompted a sell-off, easing the geopolitical risk premium in crude markets.

Additional pressure came from higher-than-expected U.S. crude inventories and resumed Venezuelan oil exports. Analysts warn that while tensions have eased temporarily, oil markets remain volatile and sensitive to any renewed Middle East unrest. The 3%-plus decline highlights how political developments continue to influence global oil prices and energy market stability.