Understand why oil soared and lost steam in a few hours

Trump says the war is practically over, and stock markets, the dollar and oil react well The price of oil soared this Monday morning (9), amid fears that the war in the Middle East will prolong. New statements by President Donald Trump, however, reversed the movement in the late afternoon — and prices continued to fall at the beginning of this Tuesday. WTI contracts (the US oil benchmark) rose 30% in the early hours of Monday, reaching US$119.48 per barrel. Brent (international reference) also surpassed US$119, at its highest level since 2022. 🗒️Do you have any suggestions for a report? Send to g1 Prices, however, fell to around US$88 per barrel around 6pm, after Trump stated that the war against Iran is “practically concluded” and could end soon. The statements were made in a telephone interview with CBS News. “I think the war is practically over. They don’t have a Navy, they don’t have communications, they don’t have an Air Force,” said the Republican. At a press conference, Trump also indicated that he may adopt measures on three main fronts to contain commodity prices: easing sanctions on oil; take control of the Strait of Hormuz (through which about 20% of global oil passes); use Venezuelan oil. According to Trump, 100 million barrels of oil from Venezuela were taken to refineries in Houston, Texas, and another 100 million will go to the USA. 🔎 The initiatives reflect the White House’s concern that rising oil prices will harm American companies and consumers. The US will hold legislative elections in November, and Trump’s Republican allies hope to maintain control of Congress. A Reuters/Ipsos survey released this Monday reinforces the Trump administration’s fears: 67% of Americans believe that gasoline prices will rise next year due to the war. US President Donald Trump speaks during a press conference at Trump National Doral Miami REUTERS/Kevin Lamarque Russian oil and talks with Putin Sources heard by Reuters say that the Republican is considering easing sanctions on Russian oil and releasing emergency stocks to contain rising global prices. Easing sanctions could increase oil supply and thus help contain rising prices. The measure, however, has not yet been detailed. This Monday, the American president participated in a call with Putin to discuss the wars in Iran and Ukraine, the Russian government reported. The phone call lasted about an hour. The Kremlin said the conversation was constructive and frank, that Putin presented proposals to quickly end the conflict in Iran and that Trump reiterated his interest in the war in Ukraine ending soon. In an interview with journalists, Trump only said he had a “very good conversation” with Putin about the war in Ukraine. According to sources interviewed by Reuters, sanctions relief against Russia could include broad easing or specific measures that would allow certain countries to buy Russian oil without the risk of US punishment. Last week, the Trump administration granted temporary authorization for India to purchase certain shipments of Russian oil, helping the country offset lost supplies from the Middle East. Liberation of the Strait of Hormuz is an alternative Analysts and representatives of the American industry say that the White House has few really effective tools to quickly reduce oil prices. “The problem is that the options range from marginal to symbolic or down to being deeply reckless,” one of the sources involved in discussions with the White House told Reuters. One of the viable alternatives, however, would be to reestablish the flow of oil tankers through the Strait of Hormuz, a maritime passage between Iran and Oman through which around a fifth of the world’s oil flows. Iran says the route has been closed since last week and threatens to attack ships passing through the region. The US denies that the road is blocked. Even so, the flow of vessels has decreased in recent days. On Monday night, Trump stated that he will attack Iran “twenty times harder” if the country blocks the flow of oil in the Strait of Hormuz. The statement was published on a social network. “If Iran does anything to interrupt the flow of oil in the Strait of Hormuz, it will be hit by the United States of America TWENTY TIMES HARDER than it has been hit so far,” he published. “In addition, we will eliminate easily destroyable targets, which will make it virtually impossible for Iran to rebuild itself as a nation again – Death, Fire and Fury will fall upon them – But I hope, and pray, that this does not happen!”, added the Republican.

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