Oil Markets Reel as Trump Predicts Quick End to Iran War

Oil prices plunged over 13% as President Trump's predictions of a quick resolution to the Iran conflict eased fears of prolonged supply disruptions. Despite this, experts warn that oil supplies may not swiftly rebound even if the war ends, given potential long-term production challenges.

Oil prices plummeted by more than 13% on Tuesday following remarks from U.S. President Donald Trump, who suggested that the ongoing conflict with Iran could soon conclude. This news tempered expectations of lasting disruptions in global oil supplies, pushing Brent futures down $12.46 to $86.50 a barrel.

Despite Trump's optimistic outlook, analysts caution against expecting a rapid recovery in oil supply. Simon Flowers from Wood Mackenzie noted that restarting oil production to full capacity could take weeks, even if the conflict ends, due to the complexities of reactivating shut-down wells.

Global markets remain on edge as the U.S. and Israeli forces continue airstrikes on Iran, and Saudi Aramco warns of potentially catastrophic consequences for oil markets if the conflict persists. Meanwhile, discussions continue over easing sanctions on Russia and utilizing strategic oil reserves to stabilize prices.

(With inputs from agencies.)