Oil prices fall as Trump tries to convince market an Iran deal is close despite recent violence
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- U.S. crude oil futures fell 2.9% to $88.64 by 9:42 a.m. ET; Brent futures fell 2.5% to $91.86 per barrel.
- Trump said a deal to end the war with Iran could be reached in two or three days and the Strait of Hormuz would open immediately after an agreement.
- Iran launched missiles at Israel in retaliation for Israeli strikes in Lebanon, prompting a brief escalation that later ceased.
- Trump pressured Israeli Prime Minister Benjamin Netanyahu to refrain from further attacks amid the escalation.
- Oil prices have surged about 30% since the Feb 28 US/Israel attack on Iran, after Iran attacked tankers and mined the Strait of Hormuz, causing a historic supply disruption.
- Analysts say global stockpiles are moderating crude prices now, but anticipate spikes later as inventories decline and summer demand peaks.
- JPMorgan analysts estimate roughly 2 million barrels per day of crude may be transiting the Strait of Hormuz on tankers that have turned off transponders, despite the visible decline in traffic.
Why it matters: Traders and consumers see a short‑term price relief, but the hidden 2 million barrels per day moving through Hormuz and the reliance on stockpiles mean that the market could face a sharp rebound later when inventories fall and summer demand peaks.
