Oil falls after Trump predicts end to war in the Middle East

Trump says the war is practically over, and stock markets, the dollar and oil react well Oil prices fell this Tuesday (10), after reaching their highest level in more than three years in the previous session. The drop comes after US President Donald Trump said the war in the Middle East could end soon, reducing concerns about prolonged disruptions to global supplies. 🗒️Do you have any reporting suggestions? Send to g1 Brent crude oil futures fell US$6.28, or 6.3%, to US$92.68 per barrel, while West Texas Intermediate (WTI) oil, a benchmark in the United States, fell US$6.19, or 6.5%, to US$88.58 per barrel. At around 7:24 am (Brasília time), Brent fell 7.44%, quoted at US$ 91.60, and WTI fell 6.84%, to US$ 88.29. Earlier, both contracts plummeted by up to 11%, before reducing part of their losses. On Monday (9), oil had surpassed US$100 per barrel, reaching its highest value since mid-2022. The increase was driven by supply cuts promoted by OPEC and other producers during the war involving the United States and Israel against Iran, a conflict that has expanded and raised fears of major disruptions in global supply. Prices began to fall after Russian President Vladimir Putin called Trump and presented proposals aimed at a quick solution to the conflict, according to a Kremlin advisor. The signaling helped alleviate some of the concerns about oil supply. In an interview with CBS News on Monday, Trump stated that he believes the war against Iran is “pretty much over” and that Washington would be “way ahead” of the initial estimated deadline of four to five weeks. “Clearly, Trump’s comments about a short-lived war have calmed markets. While there was an overreaction bullish yesterday, we now see an overreaction lower,” said Suvro Sarkar, energy team leader at DBS Bank. According to him, the market may be underestimating the risks for Brent at these price levels. “Murban and Dubai are still well above US$100 per barrel, so practically nothing has changed in terms of fundamentals,” he added, referring to two types of oil used as benchmarks in the Middle East. In response to Trump’s statements, the Islamic Revolutionary Guard Corps stated that it “will determine the end of the war” and that Tehran will not allow “a liter of oil” to be exported from the region if attacks by the United States and Israel continue. The statement was published by Iranian state media on Tuesday, citing the spokesman for the country’s armed forces. Even so, prices remain under pressure as Trump evaluates the possibility of easing sanctions against Russia and releasing emergency oil stocks as part of a package of measures to contain rising global prices, according to sources heard by the agency. “Discussions about easing sanctions on Russian oil, Donald Trump’s comments suggesting that the conflict may lose intensity and the possibility of G7 countries resorting to strategic reserves send the same message: somehow, more barrels must reach the market”, said Priyanka Sachdeva, analyst at Phillip Nova, in a note released this Tuesday. The Group of Seven (G7) countries said on Monday that they were prepared to adopt “the necessary measures” in the face of rising global oil prices, although they did not explicitly commit to releasing emergency reserves. Price of a barrel of oil falls after Trump’s declaration that the war in the Middle East is nearing an end Jornal Nacional/ Reproduction

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