Global oil prices continued to fall during overnight trading into Tuesday after a dramatic surge the previous day, as markets reacted to comments from US President Donald Trump suggesting the war involving Iran could end “very soon”.
Sharp reversal after historic spike
Oil markets experienced extreme volatility at the start of the week. On Monday, crude prices surged amid fears that the conflict involving Iran could disrupt energy supplies across the Middle East and potentially threaten shipping through the Strait of Hormuz, one of the world’s most important oil transit routes.
At the peak of the rally, Brent crude briefly traded near 119 dollars per barrel while US benchmark West Texas Intermediate (WTI) reached around 116 dollars per barrel — levels not seen in many months.
However, the rally quickly reversed. By around 02:00 on Tuesday morning, Brent crude had dropped to roughly 89 dollars per barrel, while WTI traded near 86 dollars per barrel. The steep fall erased a significant portion of the previous day’s surge.
Trump comments shift market sentiment
The sharp decline followed comments from US President Donald Trump late Monday, when he suggested that the conflict involving Iran might soon reach a conclusion.
Trump stated that the war could end “very soon”, a remark that immediately influenced market sentiment. Traders interpreted the statement as a signal that tensions might de-escalate and that the risk of a prolonged disruption to global oil supply could diminish.
Energy markets tend to react quickly to geopolitical signals, particularly when they involve the Middle East, which accounts for a large share of global oil production and exports.
Markets remain highly sensitive
Despite the overnight drop, analysts note that oil markets remain extremely sensitive to developments in the region. Any escalation affecting key infrastructure or shipping routes could quickly push prices higher again.
The Strait of Hormuz remains a particular concern. Roughly a fifth of the world’s oil supply passes through the narrow waterway between Iran and Oman, making it one of the most strategically important chokepoints in global energy markets.
Investors are also watching whether the recent surge in oil prices could affect inflation expectations and central bank policy in major economies.
Energy volatility ripples through markets
The sudden swings in oil prices have already contributed to turbulence across global financial markets this week. Asian stock markets fell sharply during Monday’s trading session as investors reacted to the initial price spike and fears of a broader regional conflict.
The subsequent drop in oil prices may help calm some of those concerns, but analysts warn that markets will likely remain volatile as long as geopolitical uncertainty persists.
For now, traders are closely monitoring political signals from Washington and developments on the ground in the Middle East — both of which could rapidly reshape expectations for global energy supply.
Newshub Editorial in Europe – March 10, 2026
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