Crude oil prices retreated on Tuesday after US President Donald Trump said the war involving Iran could be nearing its conclusion, a remark that quickly eased some of the anxiety that had gripped energy markets only a day earlier.

The shift came after a turbulent stretch for traders. Oil had surged to nearly $120 a barrel on Monday amid fears the conflict in the Middle East could severely disrupt global supply. By Tuesday, however, the mood had softened and prices fell back toward the $90 range as investors reassessed the likelihood of a prolonged crisis. (Reuters)

Trump suggested in an interview that the conflict was “very complete, pretty much,” indicating that military operations might end sooner than expected. The comment provided some reassurance to financial markets that had been bracing for deeper supply shocks across the global energy system. (Reuters)

The reaction was immediate. Oil futures dropped sharply from their recent highs, with Brent crude falling more than 6 percent at one point during trading. US benchmark West Texas Intermediate crude also declined by a similar margin, reflecting a rapid cooling of the panic-driven surge seen the previous day. (Reuters)

Equity markets followed the same pattern. After heavy losses earlier in the week, major indexes across Europe and Asia staged a rebound as investors interpreted the president’s remarks as a possible signal that tensions might not spiral further. The UK’s FTSE 100 rose, while Germany’s DAX and France’s CAC 40 also posted gains. (AP News)

In Asia, the recovery was even more pronounced. Japan’s Nikkei 225 climbed nearly three percent and South Korea’s Kospi surged more than five percent, recouping some of the ground lost during the previous session’s sell-off. (AP News)

Still, the relief was cautious rather than celebratory. Much of the uncertainty continues to revolve around the Strait of Hormuz, a narrow waterway linking the Persian Gulf to global shipping routes. Roughly a fifth of the world’s oil normally travels through the passage, making any disruption there a matter of global economic concern. (Wikipedia)

Trump also issued a warning that the United States would respond forcefully if Iran attempted to block oil shipments through the strait. Iranian officials, in turn, signaled they could restrict exports from the region if attacks continued, underscoring how fragile the situation remains. (Reuters)

Analysts say the sharp swing in oil prices reflects a market still reacting minute by minute to political signals. The spike toward $120 earlier in the week was driven by fears of long-term supply disruption, but the subsequent pullback suggests traders are now weighing the possibility that the conflict could de-escalate faster than expected. (The Guardian)

For now, energy markets appear to be pausing after several days of extreme volatility. Whether that calm lasts will depend largely on developments in the Middle East and the security of the shipping lanes that carry a large share of the world’s oil.