West Texas Intermediate (WTI) crude fell 4% to trade at $99 per barrel, marking its biggest single-day drop since April 17. Brent crude, the global benchmark, also declined 5% to $105 per barrel as traders reacted to signs of possible diplomatic progress between the US and Iran.
The decline came after financial data provider LSEG reported that three oil tankers carrying crude to China and South Korea had successfully crossed the Strait of Hormuz, a key global oil transit chokepoint that has remained under intense scrutiny amid escalating regional tensions.
Speaking to reporters at Joint Base Andrews, Trump said the US was in the “final stages” of talks with Iran, though he maintained a cautious tone on whether a breakthrough would materialise.
“We’ll see what happens,” Trump said, adding that either a deal would be reached or “we’re going to do some things that are a little bit nasty, but hopefully that won’t happen.”
The comments come at a time when global energy markets are closely monitoring developments around the Strait of Hormuz, through which nearly a fifth of the world’s oil supply passes. Concerns over potential disruptions in the waterway had earlier pushed crude prices sharply higher and reignited fears of inflationary pressures globally.
Separately, Trump struck a more aggressive tone during a commencement address at the US Coast Guard Academy, claiming that Iran’s naval and air capabilities had been effectively dismantled.
“Everything’s gone. Their navy’s gone. Their air force is gone. Just about everything. The only question is, do we go and finish it up? Are they going to be signing a document? Let’s see what happens,” he said.
Meanwhile, NATO officials were reportedly discussing the possibility of a military operation to ensure safe commercial passage through the Strait of Hormuz if the waterway remains blocked beyond early July.
The easing in oil prices also coincided with a pullback in US Treasury yields, with the benchmark 10-year Treasury yield slipping towards 4.5%, while the 30-year yield stood at 5.11%.
