New York, NY, USA (WNEWS) – Global oil prices plunged back below $90 per barrel Monday after briefly surging close to $120 per barrel earlier in the day, capping one of the most volatile trading sessions in energy markets since the Middle East conflict escalated.
Crude prices initially surged overnight as investors feared severe supply disruptions tied to the widening conflict involving Iran. At one point during early trading, Brent crude approached the $120 level, raising alarm across financial markets about the potential for a major global energy shock.
However, prices reversed sharply by midday and continued falling through the afternoon session, ultimately settling below $90 per barrel by the close of trading Monday.
Markets Whipsawed by Geopolitical Signals
The dramatic reversal highlights how sensitive energy markets have become to developments surrounding the Iran conflict.
Traders had initially priced in the possibility that the war could severely disrupt oil shipments through the Strait of Hormuz, one of the world’s most critical energy chokepoints. Roughly 20% of global oil supply normally moves through the narrow waterway, making it a key vulnerability during regional conflict.
The early spike pushed crude prices to their highest levels since the immediate aftermath of Russia’s 2022 invasion of Ukraine, according to market analysts.
Markets began to stabilize after signs that diplomatic efforts could bring the conflict closer to an end.
Trump Says War Could End Soon
U.S. President Donald Trump contributed to the sharp shift in market sentiment Monday afternoon when he suggested that the conflict may soon wind down.
In remarks reported by U.S. media, Trump told a reporter that the United States had already achieved many of its military objectives and indicated that the war could end quickly.
“I think the war is very complete, pretty much,” Trump said in comments that circulated widely on social media and financial news platforms.
The president’s comments contrasted with a social media post he made earlier in the conflict suggesting that high oil prices were a “small price to pay” for security gains in the region.
Analysts say the shift in tone helped calm energy markets that had been reacting to worst-case scenarios involving prolonged supply disruptions.
G7 Signals Possible Emergency Oil Measures
Global leaders also signaled that they are closely monitoring the energy situation.
Finance ministers from the Group of Seven (G7) advanced economies discussed the possibility of releasing emergency oil reserves if market conditions deteriorate further, though officials indicated they are not ready to take that step yet.
The potential release of strategic oil reserves can help stabilize markets by increasing available supply during periods of sudden price spikes.
Volatility Likely to Continue
Despite Monday’s sharp price drop, energy markets remain on edge as the Middle East conflict continues.
Economists warn that as long as shipping through the Strait of Hormuz remains threatened and regional tensions remain high, oil markets could continue experiencing dramatic price swings.
For now, traders appear to be balancing two competing forces: the risk of supply disruption from war and the possibility that diplomatic progress could quickly reduce those fears.
