Oil sinks 7pc as Trump predicts Middle East de-escalation

Oil prices fall after topping $119 a barrel on Monday

Trump predicted the war in the Middle East could be over soon

G7 ready to act on oil surge but holds off tapping reserves

Oil prices plummeted 7 per cent on Tuesday after soaring to a more than three-year high in the previous session as US President Donald Trump predicted the war in the Middle East could end soon, easing concerns about prolonged disruptions to oil supplies.

Brent futures were down $6.75, or 6.8pc, to $92.21 a barrel at 10:12 GMT, while US West Texas Intermediate (WTI) crude was down $6.41, or 6.8pc, to $88.36 a barrel. Both contracts fell as much as 11pc earlier.

Volumes in Brent dropped to about 213,000 contracts, the lowest amount since February 27, just before the start of the conflict. Volumes in WTI fell to 212,000, the lowest since February 20.

Oil surged to more than $119 barrel on Monday to its highest since mid-2022 as supply cuts by Saudi Arabia and other producers stoked fears of major disruptions to global supplies.

Prices later retreated after Russian President Vladimir Putin held a call with Trump and shared proposals aimed at a quick settlement to the war, according to a Kremlin aide, easing concerns about supply.

Trump said on Monday in a CBS News interview that he thought the war against Iran was “very complete” and Washington was “very far ahead” of his initial........

© Dawn Business