Kuala Lumpur, – Global oil prices dropped sharply after U.S. President Donald Trump signaled that the United States may take control of the strategic Strait of Hormuz, easing market fears of prolonged supply disruptions amid the ongoing Middle East conflict.
Earlier this week, oil prices had surged to nearly US$119 per barrel, driven by escalating tensions involving Iran and concerns that shipments through the vital oil route could be disrupted. However, prices later retreated significantly after Trump suggested the conflict may soon de-escalate and hinted at measures to secure oil flows through the strait.
Following the comments, Brent crude fell more than 7% to around US$91–92 per barrel, while U.S. West Texas Intermediate (WTI) dropped to around US$88 per barrel, marking one of the sharpest single-day declines in recent months.
The Strait of Hormuz, located between Iran and Oman, is considered one of the most important energy chokepoints in the world, with roughly 20% of global oil supply passing through the narrow shipping route every day. Any disruption in the area can trigger major volatility in global energy markets.
Markets reacted positively after Trump suggested that the conflict could end soon and that the U.S. could take steps to secure shipping lanes, reducing fears that global oil supplies would remain blocked.
Despite the decline in prices, analysts warn that energy markets remain highly volatile as geopolitical tensions continue in the Middle East. If shipping disruptions in the Gulf region persist, oil prices could spike again in the coming weeks.
