Oil prices retreated from recent multi-year highs during European trading on Wednesday, briefly dipping below the $100-per-barrel mark after U.S. President Donald Trump indicated that Washington could soon move toward ending the war with Iran.
Brent crude for June delivery, the global benchmark, was down 1.7% at $102.25 per barrel. Since the conflict began in late February, Brent prices have surged to nearly $120 per barrel, compared with roughly $70 before the war started.
Meanwhile, U.S. West Texas Intermediate crude declined 2.4% to $98.92 per barrel.
Trump said on Tuesday that the United States could exit the conflict within “two to three weeks,” adding that Iran would not necessarily need to sign a formal agreement for the fighting to end.
The president also repeated that talks with Tehran are progressing well, although Iranian officials have often disputed that characterization. Still, Iran confirmed that communications between the two sides are ongoing, and the country’s president said Iran has the “necessary will” to end the conflict if it receives assurances it will not face further attacks.
The White House said Trump is scheduled to address the nation on Wednesday with an “important update on Iran.”
Earlier this week, a report by the Wall Street Journal said Trump had told advisers he would be prepared to halt U.S. military action against Iran even if the Strait of Hormuz—a vital route carrying about 20% of the world’s oil supply—remains largely closed.
Shipping traffic through the strait has nearly collapsed amid the threat of Iranian strikes on tankers, keeping upward pressure on global oil prices. Analysts have warned that if the strait remains shut for an extended period, or if Iran introduces a toll for ships passing through the route, oil prices could remain elevated in the near term.
U.S. crude inventories rise unexpectedly – API
In separate data, the American Petroleum Institute (API) reported that U.S. crude inventories increased by 10.26 million barrels last week, sharply contrasting with forecasts for a 1.3-million-barrel drawdown and following the previous week’s 2.3-million-barrel build—a sign of softer demand.
API chief executive Mike Sommers emphasized the broader supply risks tied to the ongoing conflict.
According to Sommers, reopening the Strait of Hormuz is “the critical piece” needed to stabilize global energy markets, warning that without the resumption of normal shipping flows, oil prices could continue to climb in major consuming regions.