Trump's Iran War Statements Impact Oil

Oil prices eased after Donald Trump asserted that the war with Iran would end 'very quickly', leading to a fall in Brent Crude and West Texas Intermediate futures. This sentiment was reinforced by JD Vance's comments about progress in peace talks between the United States and Iran. However, market participants remain cautious due to Donald Trump's contradictory statements, including warnings of potential new attacks on Iran and the postponement of a planned strike. The conflict has severely disrupted global oil supplies, particularly through the Strait of Hormuz, which normally carries a fifth of global oil. Analysts expect oil prices to remain elevated due to the risk of prolonged supply disruptions, with Citigroup forecasting Brent Crude to reach $120 a barrel. Countries, including the United States, are relying on strategic inventories to offset the supply shortfall, as indicated by falling crude oil inventories reported by the American Petroleum Institute and expected by the United States — Energy Information Administration.