Oil prices and shares of major energy producers declined on Wednesday after Donald Trump indicated the conflict in Iran could end within “two to three weeks.”
Brent crude dropped to as low as $98.35 per barrel before recovering part of its losses to trade back above $102, as investors assessed the possibility that the conflict—which has disrupted global energy markets in recent months—may soon wind down.
Energy companies moved lower alongside the drop in oil. ExxonMobil (NYSE:XOM) and Chevron each fell about 2% in premarket trading by 04:54 ET (08:58 GMT), while ConocoPhillips (NYSE:COP) declined 1.9%. European oil majors also weakened, with BP (LSE:BP.) and TotalEnergies (EU:TTE) both falling roughly 2%, and Italy’s Eni (BIT:ENI) down 2.7%.
Speaking on Tuesday, Trump said: “Now we’re finishing the job. I think in two weeks or maybe a few days longer, we’ll do the job. We want to knock out everything they’ve got.”
The remarks marked the clearest indication so far that Trump plans to bring the month-long conflict to an end. The war has reshaped geopolitical dynamics in the Middle East, rattled global energy markets and become a defining issue of his presidency.
The U.S. president also said Iran would not need to sign a formal agreement with Washington for hostilities to cease.
Financial markets elsewhere reacted positively to the prospect of a resolution. Asian stocks led the advance, with South Korea’s Kospi surging more than 8% and Japan’s Nikkei climbing 5.2%. Hong Kong’s Hang Seng rose 2%, while China’s CSI 300 gained 1.7%. European markets followed suit, with the FTSE 100 up 1.7% and the Stoxx 600 advancing 2.2% in early trading.
Gold prices also continued their recent rally, rising 1.3% to trade above $4,700 per ounce, the highest level in nearly two weeks, after jumping 3.5% the previous day.
Trump is scheduled to deliver a national address at 9 pm ET on Wednesday.