Oil prices fall after Trump says war ‘soon over’ – Daily Business

Donald Trump: further warning to Iran

Oil prices fell back early today after US President Donald Trump indicated that the attacks on Iran will soon be over.

Brent crude was trading at $93.76 a barrel at 7am, down from a peak of about $117 on Monday, though traders warned that it remained highly volatile and is still about 20% higher than before the US and Israel launched airstrikes on Iran.

Mr Trump also warned Iran not block the Strait of Hormuz, a vital shipping route crucial to global energy supplies. Around a fifth of the world’s oil passes through the narrow waterway.

On social media, Mr Trump said: “If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far.”

Commenting in a news conference on the joint action with Israel, he said: “We took a little excursion because we felt we had to do that to get rid of some evil. Then, I think you’ll see it’s going to be a short-term excursion.”

Share prices in Asia, which have pummelled in recent days, rebounded on hopes that the war will be short-lived and economic impact will not be as severe as feared.

Japan’s Nikkei 225 was 2.7% higher, while the Hang Seng in Hong Kong was up by 2% and South Korea’s Kospi gained by 5.5%. After Monday’s sharp fall, the FTSE 100 lost 35.23 points (0.34%) to close at 10,249.52.

A meeting between G7 leaders and the International Energy Agency (IEA) ended without a final decision on whether the nations would release oil from stockpiles, though the matter was discussed.

Chancellor Rachel Reeves said on Monday the UK used the meeting to urge for “immediate de-escalation” in the Middle East and guaranteed security for vessels in the region.

She said: “I stand ready to support a co-ordinated release of collective IEA oil reserves.”

Those attending the meeting said they were ready to take “necessary measures” to address the global supply of oil and gas.

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