Oil prices saw a significant decline, falling below $90 per barrel on Tuesday following US President Donald Trump’s optimistic outlook on ending the Middle East war. Brent futures plummeted by 10.85% to $88.22 per barrel from the previous close of $98.96. Currently, they are trading at $92.50, marking a 6.44% decrease.
Meanwhile, crude oil futures also experienced a dip, reaching $87.94 per barrel, down over 7%. The intraday low hit $84.43, a substantial 29.33% drop from the all-time high of $119.48. The drop in oil prices came after Trump hinted at a potential de-escalation in the Middle East conflict.
Trump’s statements on social media about the temporary nature of high oil prices due to confronting Iran’s nuclear threat led to the decline in oil prices. He emphasized that the rise in oil prices is a small cost for ensuring safety and peace for the US and the world. Trump also mentioned the imminent conclusion of the American campaign against Iran, focusing on preventing Iran from developing threatening weapons.
Finance Minister Nirmala Sitharaman addressed concerns about the impact of rising global crude oil prices on inflation in India, stating that the current inflation rate remains near the lower end of the target range, indicating minimal immediate effects.
