Oil prices edged lower on Wednesday after US President Donald Trump said the conflict with Iran could end “very quickly,” easing some investor concerns despite continuing supply disruptions in the Middle East.
Brent crude futures fell 45 cents, or 0.4%, to USD 110.83 per barrel, while US West Texas Intermediate crude dropped 27 cents, or 0.3%, to USD 103.88 in early trading.
Both benchmarks had already declined by nearly USD 1 on Tuesday after US Vice President JD Vance said Washington and Tehran had made progress in peace talks and that neither side wanted renewed military action.
However, markets remained volatile after Trump warned the United States could strike Iran again if no agreement is reached within days. He also claimed Iranian leaders were “begging for a deal,” despite previously pausing planned military action following a proposal from Tehran.
The conflict has effectively shut the Strait of Hormuz, which carries nearly one-fifth of global oil supplies, creating what the International Energy Agency described as the world’s biggest current oil supply disruption.
Analysts at Fujitomi Securities and Citigroup warned that prices could remain elevated, with Citi forecasting Brent crude could rise to USD 120 per barrel if disruptions continue.
Meanwhile, US crude inventories reportedly fell for a fifth consecutive week, with official Energy Information Administration data expected later on Wednesday.
