Signs of easing in US-Iran tensions combined with potential release of US and European oil reserves; Brent and WTI crude oil both retreat below $85.

CNBC Finance APP has learned that U.S. President Trump’s remarks about the “almost ending” of the Iran conflict eased market concerns over a long-term disruption of global oil supplies, causing oil prices to plummet more than 30% from their highs. Data shows that, at the time of writing, WTI crude oil futures fell over 10%, trading at $84.82 per barrel; Brent crude futures also dropped over 10%, at $88.62 per barrel.

On Monday, under the impact of Middle East conflict, disruptions in the Strait of Hormuz oil transportation and production cuts by several oil-producing countries heightened fears of a major global oil supply interruption. Brent crude futures reached $119.50 per barrel intraday, and WTI crude futures hit $119.48 per barrel, the highest levels since mid-2022.

However, oil prices quickly retreated after Trump’s “firefighting” remarks. On March 9 local time, Trump stated that the U.S. war with Iran might end soon. It is reported that Trump said in a phone interview, “I think this war is basically over, almost. They no longer have a navy, communication systems, or air force.” Trump also said this progress is “much faster” than his initial estimate of 4 to 5 weeks.

In response to Trump’s statement, the Iranian Revolutionary Guard said that the end of the conflict would be decided by Iran, and if the U.S. and Israel continue their attacks, Tehran will not allow a single barrel of oil to be exported from the region.

However, these remarks did not boost oil prices. According to multiple sources, Trump is considering easing sanctions on Russian oil and releasing emergency crude reserves, as part of a package of measures to curb the surge in global oil prices during the Iran conflict. U.S. Energy Secretary Granholm stated that the U.S. government is “discussing” coordinating the release of strategic petroleum reserves to address the current energy market situation. Meanwhile, EU Economic Affairs Commissioner Donohoe said at a Eurogroup press conference that it is too early to discuss specific policy measures regarding the Middle East situation. He also stated that preparations are underway to take necessary measures, including the use of strategic oil reserves.

IG Group market analyst Tony Sycamore said in a report, “Considering the events of the past 24 hours, I expect crude oil prices to remain highly volatile, fluctuating roughly within a broad range of $75 to $105 over the next few trading sessions.”