Oil prices fell 2.5 per cent at settlement on Tuesday as investors focused on signs of a recovery in crude exports from the Middle East, even as US President Donald Trump declared that the war with Iran could end "very soon" and fuel prices would fall sharply afterward.
Brent crude futures dropped $2.69, or 2.6 per cent, to settle at $102.59 per barrel, while US West Texas Intermediate (WTI) crude fell $3.22, or 3.5 per cent, to $89.38.
Speaking to reporters in the Oval Office, Trump said US officials had been in contact with mediators seeking an end to the conflict with Iran. "We're going to win," he said. "It's going to go pretty quickly." He also said fuel prices would fall sharply once the war ends with a US victory.
Separately, the United States continued its economic warfare against Tehran, placing sanctions on 10 individuals and entities it accused of procuring weapons and weapons components for Iran's Ministry of Defence and Armed Forces Logistics. Treasury Secretary Scott Bessent said the department would "continue to identify, expose, and isolate Iran's enablers."
The price drop came amid evidence that Gulf producers are moving far more crude through the Strait of Hormuz than many expected. Oil and petroleum-product flows through the waterway averaged 13.1 million barrels per day last week, according to marine-tracking firm Kpler — just below 80 per cent of the 17.1 million barrels per day that crossed before the war, helped by military-escorted tanker shuttles and discreet "dark" transits.
For context, Brent hovered around $105 a barrel earlier in the week and momentarily dropped to $97-levels last week. It remains nearly 50 per cent above the roughly $72 a barrel seen in late February before the war began. Brent is on track for a monthly gain of about 13 per cent, while WTI heads for a 4 per cent rise.
For import-dependent economies like India, the direction of crude remains a key variable for the import bill, inflation and the rupee, which has been trading near record lows.
Sources: Gulf News, New Indian Express
Brent crude futures dropped $2.69, or 2.6 per cent, to settle at $102.59 per barrel, while US West Texas Intermediate (WTI) crude fell $3.22, or 3.5 per cent, to $89.38.
Speaking to reporters in the Oval Office, Trump said US officials had been in contact with mediators seeking an end to the conflict with Iran. "We're going to win," he said. "It's going to go pretty quickly." He also said fuel prices would fall sharply once the war ends with a US victory.
Separately, the United States continued its economic warfare against Tehran, placing sanctions on 10 individuals and entities it accused of procuring weapons and weapons components for Iran's Ministry of Defence and Armed Forces Logistics. Treasury Secretary Scott Bessent said the department would "continue to identify, expose, and isolate Iran's enablers."
The price drop came amid evidence that Gulf producers are moving far more crude through the Strait of Hormuz than many expected. Oil and petroleum-product flows through the waterway averaged 13.1 million barrels per day last week, according to marine-tracking firm Kpler — just below 80 per cent of the 17.1 million barrels per day that crossed before the war, helped by military-escorted tanker shuttles and discreet "dark" transits.
For context, Brent hovered around $105 a barrel earlier in the week and momentarily dropped to $97-levels last week. It remains nearly 50 per cent above the roughly $72 a barrel seen in late February before the war began. Brent is on track for a monthly gain of about 13 per cent, while WTI heads for a 4 per cent rise.
For import-dependent economies like India, the direction of crude remains a key variable for the import bill, inflation and the rupee, which has been trading near record lows.
Sources: Gulf News, New Indian Express
