Oil Prices Slip as Trump Signals Quick End to Iran Conflict

Oil prices edged lower on Wednesday after U.S. President Donald Trump claimed the ongoing conflict with Iran could end “very quickly.” However, global energy markets remain cautious as uncertainty surrounding U.S.-Iran peace negotiations and disruptions in Middle East oil supply continue to fuel volatility.

Brent crude futures dropped 45 cents, or 0.4%, to $110.83 per barrel, while U.S. West Texas Intermediate (WTI) crude declined 27 cents, or 0.3%, to $103.88. The decline followed losses of nearly $1 on Tuesday after U.S. Vice President JD Vance stated that Washington and Tehran had made progress in diplomatic discussions and both sides wanted to avoid renewed military escalation.

Despite the temporary easing in oil prices, analysts warn that geopolitical risks remain high. Toshitaka Tazawa of Fujitomi Securities said investors are closely watching whether the U.S. and Iran can reach a lasting peace agreement, especially as Washington’s position appears to shift frequently.

Trump’s recent comments added to market uncertainty. While he told lawmakers the war could end soon, he also warned that the U.S. may launch fresh strikes on Iran if negotiations fail. Earlier, Trump revealed he had delayed a planned military attack just an hour before it was set to begin after Tehran proposed a new peace initiative.

The conflict has severely impacted global oil transportation, with the Strait of Hormuz effectively closed. According to the International Energy Agency, the vital shipping route normally handles nearly 20% of the world’s oil supply, making the disruption one of the largest in recent years.

Citi analysts now expect Brent crude prices could climb to $120 per barrel, arguing that markets are underestimating the risk of prolonged supply shortages. Meanwhile, U.S. crude inventories reportedly declined for a fifth consecutive week, signaling tighter supply conditions and continued pressure on global oil markets.