Oil Prices Fall as Trump Says Iran Conflict Could End “Very Quickly”

Oil prices eased on Wednesday after U.S. President Donald Trump reiterated that the war with Iran could end “very quickly,” though markets remain cautious over ongoing geopolitical risks and disruptions to Middle East supply.

Brent crude futures fell by 88 cents, or 0.8%, to $110.40 a barrel by 0410 GMT, while U.S. West Texas Intermediate (WTI) dropped 67 cents, or 0.6%, to $103.48.

Analysts say prices softened on hopes of a potential diplomatic breakthrough, even as uncertainty persists over whether any peace deal would restore normal supply levels.

“Benchmark prices softened on a potential deal as the market gauges the geopolitical outcomes,” said Emril Jamil, a senior oil research analyst at LSEG.

He added that even in the event of a deal, oil prices could remain elevated because supply would not immediately return to pre-war levels.

Both major benchmarks had already fallen nearly $1 on Tuesday following comments from U.S. Vice President JD Vance suggesting progress in talks between the U.S. and Iran.

Market watchers say investors are closely monitoring whether Washington and Tehran can reach any meaningful agreement, given shifting U.S. positions on the conflict.

“Oil prices are likely to remain elevated given the possibility of renewed U.S. attacks on Iran,” said Toshitaka Tazawa of Fujitomi Securities.

Trump also indicated earlier that the U.S. might still strike Iran again, while later suggesting he had paused military action after a new diplomatic proposal from Tehran.

Despite signals of possible negotiations, he warned that further U.S. strikes could happen if no agreement is reached.

Investment bank Citi maintained its bullish outlook, projecting Brent crude could rise to $120 per barrel in the near term due to supply disruption risks.

Meanwhile, tanker traffic through the Strait of Hormuz remains below normal levels, though some vessels have recently passed through the critical shipping route.

To cushion supply shortages, countries are increasingly drawing on commercial and strategic oil reserves.

In the United States, crude inventories reportedly fell for a fifth consecutive week, with further declines expected in official data from the Energy Information Administration later on Wednesday.