Oil prices slipped from multi-year highs in Asian trading on Wednesday after U.S. President Donald Trump said the Iran war could end soon, but reportedly without reopening the Strait of Hormuz.
As of 02:57 ET (06:57 GMT), Brent Oil Futures expiring in June dropped 4% to $99.81 per barrel, while West Texas Intermediate (WTI) crude futures for May slipped 3.6% to $97.63 per barrel.
The decline followed a record monthly rally in March, when Brent futures surged more than 63%.
On Tuesday, Brent crude futures for May had settled about 5% higher at $118.31, while the WTI contract ended lower at $101.62.
Get premium crude market insights with InvestingPro subscription
Trump says Iran war could end soon U.S. President Donald Trump said on Tuesday that Washington could withdraw from the conflict within “two to three weeks,” adding that Iran doesn’t have to make a deal to end the conflict.
However, a Wall Street Journal report stated that Trump had told aides he was willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remains largely closed.
On the Iranian side, state media reported that President Masoud Pezeshkian said Tehran was ready to end the war, while reiterating key demands, reinforcing expectations that negotiations could emerge but remain conditional.
The White House also said Trump would address the nation at 0100 GMT on Thursday to provide an “important update on Iran."
The Strait of Hormuz -- a critical artery for roughly a fifth of global oil supply -- has seen tanker traffic collapse amid the conflict, sharply restricting exports and sustaining upward pressure on prices.
US crude stock surge against expectations of a draw - API Adding to bearish signals, data from the American Petroleum Institute showed U.S. crude inventories rose by 10.26 million barrels last week, sharply above expectations for a 1.3 million-barrel draw and compared with a prior build of 2.3 million barrels, pointing to weaker demand.
American Petroleum Institute CEO Mike Sommers on Tuesday underscored the structural risk to supply.
Sommers said reopening the strait was “the critical piece” to stabilise global markets, warning that without restored flows, oil prices would continue rising across major consuming regions.
