Oil tumbles 4% as Trump remarks ease investor worries of a US strike against Iran

Oil prices tumbled more than 4% on Thursday as investors perceived the threat of US military action against Iran to have eased following President Trump’s latest remarks about the regime’s handling of widespread protests.

International pricing benchmark Brent crude slipped to around $63.40 per barrel, while West Texas Intermediate traded near $59 per barrel.

Crude prices reversed sharply Wednesday afternoon after Trump said, “We’ve been told that the killing in Iran is stopping," easing expectations of imminent US intervention.

Those remarks contrasted with Trump’s earlier warnings toward Tehran, in which he said Iran’s ruling regime would “pay a big price" for its violent response to anti-government protests.

Up until Trump’s tone shifted, oil had surged nearly 10% over a five-session span to a two-month high, with traders betting that rising unrest in Iran and a potential US strike could trigger supply and flow disruptions for OPEC’s third-largest producer.

Iran produces more than 3 million barrels and exports around 1.5 million barrels per day. The country also has control over the Strait of Hormuz, a global chokepoint for oil flows.