ISTANBUL 

Oil prices slipped below $90 per barrel on Monday after US President Donald Trump said Monday that the war with Iran "is very complete, pretty much" and the Group of Seven (G7) energy ministers signaled they could release strategic crude reserves to help offset the major supply disruption triggered by the Iran war.

Brent crude was down 4.2% at $87.2 per barrel as of 2010GMT Monday, after earlier surging to $119.50. The spike marked the first time oil traded above $100 since Russia’s invasion of Ukraine in 2022.

US benchmark West Texas Intermediate (WTI) crude fell 3% at $88.3 per barrel, after climbing as high as $119 overnight.

The surge in prices followed production cuts by Gulf Arab countries as the Strait of Hormuz remains closed due to security threats from Iran, disrupting the movement of crude shipments.

Trump statements push down prices

However, prices sank after Trump told CBS News Monday that the Iran war “is very complete, pretty much."

"(Iran has) no navy, no communications, they've got no air force. Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones," he said, adding that the US is “very far” ahead of his initial four- to five-week estimated time frame for the war.

As for the Strait of Hormuz, Trump said ships are moving through it now but also that he is “thinking about taking it over.”

Separately, G7 finance ministers discussed the impact of the Iran conflict during a virtual meeting on Monday and signaled readiness to stabilize global energy markets.

“We stand ready to take necessary measures, including to support global supply of energy such as stockpile release,” they said in a joint statement. The G7 members include Canada, France, Germany, Italy, Japan, the UK, and the US.

Earlier, US President Donald Trump said on Truth Social that higher oil prices were a “very small price to pay” for eliminating Iran’s nuclear threat, adding that “only fools would think differently.”

Meanwhile, Gulf Arab producers have reduced output as crude accumulates in storage facilities due to the closure of the Strait of Hormuz. Oil tankers have largely avoided the narrow waterway amid concerns Iran could target vessels transiting the route.