Oil Prices Crash as Trump Signals Iran Peace Talks
Oil prices plunge amid global energy crisis fears after Trump claims Iran talks. Markets react sharply as tensions, oil supply risks, and volatility rise.
Oil prices fell sharply in early Asian trading after US President Donald Trump stated that negotiations to end the war were underway—a claim that Iranian officials have dismissed as false.
Brent crude dropped 6.6% to $97.56 (£72.65) per barrel, while US-traded oil fell by more than 5.5% to $87.20.
On Tuesday, Trump said that talks to end the war were taking place "right now" and that the parties with whom the US is negotiating are "very eager to make a deal."
On Monday, officials in Tehran stated that claims of negotiations between the US and Iran were "fake news," as attacks between Israel and Iran continued.
Trump noted that Vice President JD Vance and Secretary of State Marco Rubio were involved in the talks to end the war.
The President further asserted that US-Israeli strikes on Tehran had resulted in a "change of power," and reiterated his claim that Iranian leaders had agreed never to possess nuclear weapons.
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However, Tehran has previously rejected claims that it was in contact with the US, characterizing such assertions as an attempt to manipulate the markets.
On Tuesday, the price of Brent crude rose back above $100 per barrel; despite the recent decline, prices remain significantly higher than they were on February 28, before the US and Israel launched their attacks on Iran.
The conflict has triggered a global energy crisis, prompting governments worldwide to announce measures in recent weeks aimed at mitigating the impact on their economies.
Since the outbreak of the war, oil and gas prices have skyrocketed, as Iran has effectively blockaded the Strait of Hormuz—a narrow waterway through which approximately 20% of the world's oil and liquefied natural gas typically passes each day. This conflict has also led to significant volatility in global financial markets.
In recent days, the heads of some of the world's largest companies have issued warnings regarding the potential consequences of the war.
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On Tuesday, the head of energy giant Shell stated that Europe could face an oil shortage next month.
Shell CEO Wael Sawan told an energy industry conference in Houston: "First, South Asia felt the shock. Then it reached Southeast Asia, Northeast Asia, and by the time April arrived, it had reached Europe." Larry Fink, the head of the major US financial firm BlackRock, suggests that if oil prices hit $150 per barrel, it could trigger a global recession.
He added that if this conflict remains unresolved—and if Iran were to become a country once again accepted by the international community—crude oil prices could persist above $100—or perhaps near $150 per barrel—for several years.
This would have a "very profound impact" on the economy and could potentially trigger "a very severe and rapid recession."
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