Oil prices swung sharply Tuesday as markets reacted to rapidly changing geopolitical developments and comments from US officials, triggering one of the most volatile trading sessions in recent months.
International benchmark Brent crude briefly traded near $87.6 per barrel as of 1850GMT after plunging earlier in the session. US benchmark West Texas Intermediate (WTI) hovered around $84.2 per barrel, following steep intraday moves as traders reassessed supply risks.
Prices plunged $10 before rebounding $11 within two hours, marking intense volatility.
The volatility came after prices surged above $119 per barrel Monday on fears of supply disruptions linked to the conflict involving Iran and concerns about shipping through the Strait of Hormuz, a key route for one-fifth of global oil supplies.
Markets then reversed course after US President Donald Trump suggested that the war "is very complete, pretty much," calming some fears about prolonged supply disruptions. Following the remarks, Brent crude dropped sharply to around $86.50, while WTI slid to about $82.53, erasing much of the previous day’s spike.
Despite the pullback, prices continued to move rapidly, with crude falling sharply before rebounding within hours as traders responded to conflicting signals about the conflict’s trajectory and possible policy responses from major economies.
Adding to the volatility, G7 officials signaled they are ready to take “necessary measures” to stabilize global energy markets, including the potential release of strategic petroleum reserves if supply disruptions worsen.
And US Energy Secretary Chris Wright said Tuesday that the US Navy “successfully escorted an oil tanker through the Strait of Hormuz,” crediting President Donald Trump with maintaining global energy stability during military operations against Iran.
In a post on the US social media platform X, Wright said the Navy ensured oil continued flowing to global markets by guiding the tanker through the strategic waterway. The post was deleted without explanation.
Iran denied that claim, saying no American ship would approach the region during the conflict.
“No American ship will dare approach the Sea of Oman, the Persian Gulf, or the Strait of Hormuz during the war,” Revolutionary Guards spokesman Sardar Naini said in remarks carried by the IRIB state broadcaster.
Naini added that Iran would halt any movement by the US fleet and its allies during Iranian missile operations.
By Mucahithan Avcioglu
Anadolu Agency
energy@aa.com.tr