Trump Says Iran War Will End Soon, Announces Sanctions Waiver and Navy Escorts; Oil Plunges
Key Takeaways
- Donald Trump said the Iran war could end soon
- Brent and WTI tumbled more than 10% on March 10, then partially recovered
- Markets experienced extreme oil price swings during a dramatic March 9 session
Trump on oil and Iran
President Trump said his administration wants to keep oil prices down.
“SINGAPORE – Oil prices tumbled after US President Donald Trump said the Iran war could end soon, Global oil benchmark Brent crude and US benchmark West Texas Intermediate (WTI) both tumbled more than 10 per cent on March 10 before clawing back some losses, after a dramatic session on March 9 that saw extreme price swings”
He called recent price rises 'artificial'.
He indicated the US may move to end the Iran-related conflict but offered few operational details.
He said he did not give details beyond saying he had discussed tanker escorts or waiving oil sanctions with Vladimir Putin.
He warned he did not expect the fighting to end this week.
Oil market volatility
Markets reacted sharply to the situation and to Mr. Trump's remarks: crude spiked above $100 a barrel and briefly neared $120 on March 9 before easing.
Brent traded in a record-wide $36 intraday band, underscoring heightened volatility.
Market reactions to remarks
Analysts and market observers were skeptical that presidential remarks alone would calm shipping or energy markets.
“SINGAPORE – Oil prices tumbled after US President Donald Trump said the Iran war could end soon, Global oil benchmark Brent crude and US benchmark West Texas Intermediate (WTI) both tumbled more than 10 per cent on March 10 before clawing back some losses, after a dramatic session on March 9 that saw extreme price swings”
The article noted that analysts said Trump's comments were unlikely to reassure shipping markets and that investors may be 'panic selling' on the headlines.
Gulf oil and shipping
The report described a strained physical oil and shipping situation in the Gulf.
The Strait of Hormuz was described as "effectively closed after a series of attacks on vessels."
This prompted major Gulf producers — Saudi Arabia, Iraq, Kuwait and the UAE — to cut output as storage fills.
The supply squeeze forced some refiners to halt operations and sparked bidding wars among Asian buyers for diverted cargoes.
Waterway shipping complexities
The article noted complexities on the water, saying the waterway was under severe strain.
“SINGAPORE – Oil prices tumbled after US President Donald Trump said the Iran war could end soon, Global oil benchmark Brent crude and US benchmark West Texas Intermediate (WTI) both tumbled more than 10 per cent on March 10 before clawing back some losses, after a dramatic session on March 9 that saw extreme price swings”
It added that "a few tankers (including one carrying Saudi crude) have transited the waterway and Iran continues shipments," underscoring both disruption and continued flows that complicate market forecasts and the potential impact of any sanctions waivers or escort measures.
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