Oil prices and shares of major energy companies moved lower on Wednesday after Donald Trump suggested the conflict in Iran could conclude within “two to three weeks.”
Brent crude briefly dropped to $98.35 per barrel before trimming losses to trade slightly above $102, as investors weighed the possibility that the war — which has disrupted global energy flows in recent months — may soon wind down.
Oil majors fell alongside crude prices. ExxonMobil (NYSE:XOM) and Chevron were each down about 2% in premarket trading at 04:54 ET (08:58 GMT), while ConocoPhillips (NYSE:COP) declined 1.9%. European energy groups also weakened, with BP (LSE:BP.) and TotalEnergies (EU:TTE) each slipping roughly 2%, and Italy’s Eni (BIT:ENI) falling 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 were the strongest indication so far that Trump intends to bring the month-long conflict to a close. The war has reshaped geopolitical dynamics in the Middle East, unsettled global energy markets and become a defining moment of his presidency.
The U.S. president also said that a formal agreement with Tehran would not be necessary for the fighting to end.
Broader financial markets reacted positively to the prospect of de-escalation. Asian equities led the gains, 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 advanced 1.7%. European stocks followed suit, with the FTSE 100 up 1.7% and the Stoxx 600 rising 2.2% in early trading.
Gold prices also continued to move higher, gaining 1.3% to trade above $4,700 per ounce, their highest level in nearly two weeks, after jumping 3.5% in the previous session.
Trump is scheduled to address the nation at 9 pm ET on Wednesday.
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