Brent Crude tumbles nearly $20 in hours as market volatility eases, offering potential relief for consumers
WEB DESK: Global oil markets faced a sharp reversal on Tuesday as Brent Crude tumbled from a near-record high of $116 per barrel to around $97 within hours, marking one of the steepest intraday declines in recent months.
The sudden crash followed days of volatility driven by escalating tensions in the Middle East. Just a day prior, Brent had surged to nearly $120 per barrel, the highest since Russia’s invasion of Ukraine, amid fears of major disruptions to Gulf shipping routes.
Analysts attribute the rapid correction to comments by former U.S. President Donald Trump, who suggested the Iran conflict could be resolved “very soon” while ensuring the safety of oil traffic through the Strait of Hormuz. His remarks prompted traders to unwind positions, erasing the so-called “war premium.”
Additional downward pressure came after G7 finance ministers indicated readiness to release emergency crude from strategic reserves to stabilize markets, following a roughly 30% surge in prices earlier this month.
Despite the retreat, energy costs remain elevated at $97 per barrel well above early-year levels of $65–$75 keeping pressure on consumers and industry. While the drop may ease household fuel costs in the U.K. and Europe, petrol retailers have yet to signal whether prices at the pump will reflect the decline.
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