Why is oil price down by 7% now, and will Brent crude futures go below $91.71 or rise again soon? Brent crude futures dropped more than 7% on Tuesday after comments from U.S. President Donald Trump suggested that the Middle East war may end soon. The statement reduced concerns about long supply disruptions in global oil markets. Brent crude futures traded at $91.71 a barrel, down $7.25 or about 7.3% at 0001 GMT. U.S. West Texas Intermediate (WTI) crude was down $6.12, or 6.5%, to $88.65. The contract had earlier reached a session high of $119.50 on Monday when tensions increased in the region. The movement shows how global energy markets react to geopolitical developments and supply risks.

Why is oil price down by 7% now, and will Brent crude futures go below $91.71 or rise again soon?

The oil market moved sharply after comments from U.S. President Donald Trump that the Middle East war could end soon. Traders reduced risk positions as fears of long supply disruption eased. Brent crude futures dropped more than 7% and traded near $91.71 per barrel after reaching $119.50 earlier. U.S. West Texas Intermediate (WTI) crude was down $6.12, or 6.5%, to $88.65. Markets reacted quickly because oil supply from the Middle East plays a large role in global energy flows. If tensions reduce, supply routes may remain open and prices may stay under pressure. However, if conflict escalates again, Brent crude futures may rise from current levels.

Why is oil price down by 7% now?

Oil prices fell after signals that the Middle East conflict may not last long. Donald Trump said the war could end soon, which reduced fears about disruption to global oil shipments. Traders had earlier pushed prices higher due to concerns about the Strait of Hormuz and regional exports. When expectations changed, many investors sold positions. Reports that the United States may ease sanctions on Russian oil also increased expectations of higher supply. These factors together pushed Brent crude futures down sharply in early trading.

Oil price fall explained

Oil prices had surged earlier as the conflict involving the United States, Israel, and Iran raised fears about supply disruptions. On Monday, prices jumped as much as 29% to the highest level since mid-2022. Traders worried that oil shipments from the Middle East could face disruption. The Strait of Hormuz is an important route for global oil transport, and concerns about shipping through this route pushed prices higher. Later in the day, oil prices began to fall after leaders discussed supply concerns and after Donald Trump said the conflict could end soon. The statement helped calm fears in energy markets.

Trump-Putin call and sanctions discussion affect prices

Prices also turned negative after reports about a phone call between Donald Trump and Russian President Vladimir Putin. Reports said the Trump administration may consider easing sanctions on Russian oil exports to stabilize global energy prices. The possibility of more oil supply entering the market reduced upward pressure on crude prices. Brent crude futures finally settled at $98.96 a barrel, up $6.27 earlier in the day before the later decline. U.S. West Texas Intermediate (WTI) crude was down $6.12, or 6.5%, to $88.65.

Market reaction across commodities and currencies

The oil market movement also affected other global commodities. Gold fell more than 1% as the U.S. dollar strengthened. A stronger dollar makes dollar-priced commodities more expensive for buyers using other currencies. Higher energy costs also raised concerns about inflation and delayed expectations for interest rate cuts.

Agricultural markets reacted strongly. Malaysian palm oil rose 9% while Chicago soybean oil reached the highest level since late 2022 before easing. Wheat and soybeans touched their highest levels since mid-2024, and corn reached a 10-month high before falling later. Aluminium prices rose to a four-year high. Benchmark aluminium on the London Metal Exchange reached $3,544 per ton due to supply concerns linked to the Middle East conflict.

Iran statements raise concerns over oil exports

Iran’s Revolutionary Guards warned that regional oil exports could stop if attacks continue. State media reported that the IRGC spokesperson said Iran would determine how the war ends. The statement also warned that Iran would not allow oil exports from the region if U.S. and Israeli attacks continue. This message came after Iran named Mojtaba Khamenei as successor to Supreme Leader Ali Khamenei during the ongoing conflict. Analysts say the market remains volatile. Oil prices may move again depending on war developments, shipping routes, and global supply decisions.

Will Brent crude futures go below $91.71 or rise again soon?

The direction of Brent crude futures now depends on developments in the Middle East conflict and global supply decisions. If shipping through the Strait of Hormuz continues without disruption and more oil enters the market, prices may fall below $91.71. However, if the conflict intensifies or exports from major producers decline, Brent crude futures may move higher again. Markets are reacting to every update related to the war, supply routes, and political statements.

Analysts insights and market outlook

Analysts say the oil market is moving based on geopolitical signals and supply risks. Some analysts noted that the strong reaction came because traders saw no clear end to the conflict earlier. When the possibility of a resolution appeared, prices dropped quickly. Analysts also point to inflation risks and currency movements. A stronger U.S. dollar has added pressure on commodities including oil and gold. Many analysts expect continued volatility in crude oil markets as long as the conflict between the United States, Israel, and Iran continues.

What should investors do now?

Investors are watching geopolitical news and supply updates closely. Many market participants are reducing exposure to large positions because prices are moving rapidly. Investors may track developments in the Middle East war, decisions on Russian oil sanctions, and shipping activity in the Strait of Hormuz. Some investors prefer waiting for clearer signals before entering new trades. Others are focusing on risk management and short-term price movements in Brent crude futures until the geopolitical situation becomes clearer.

FAQs

Q1. Why is oil price down by 7% now, and will Brent crude futures go below $91.71 or rise again soon?
Oil prices fell after Donald Trump said the Middle East war could end soon. This reduced fears about supply disruption. However, conflict risks and export threats may still move prices again.

Q2. How did the Middle East conflict impact global oil markets?
The conflict raised concerns about oil shipments through the Strait of Hormuz. Prices surged earlier due to supply fears, but later dropped after signals that diplomatic talks may end the conflict.