Oil prices eased from recent multi-year highs during European trading on Wednesday, briefly dropping below the $100-per-barrel level after U.S. President Donald Trump suggested Washington may soon wind down its military campaign against Iran.
Brent crude for June delivery, the global benchmark, was down 1.7% at $102.25 per barrel. Since the war began in late February, Brent has climbed as high as roughly $120 per barrel, compared with about $70 before the conflict started.
Meanwhile, U.S. West Texas Intermediate crude fell 2.4% to $98.92 per barrel.
Speaking on Tuesday, Trump said the United States could exit the conflict within “two to three weeks,” adding that Iran would not necessarily need to reach a formal agreement for hostilities to end.
The president also repeated that discussions with Tehran are progressing, although Iranian officials have often pushed back on that claim. Still, Iran acknowledged that communication channels between the two sides remain open, and the country’s president said Iran has the “necessary will” to bring the war to a close if it receives assurances that it will not face further attacks.
The White House added that Trump will address the nation on Wednesday to deliver an “important update on Iran.”
Earlier this week, the Wall Street Journal reported that Trump had told advisers he would consider ending U.S. military action against Iran even if the Strait of Hormuz—a critical passageway that carries roughly one-fifth of the world’s oil supply—remains largely closed.
Tanker traffic through the strait has nearly halted amid fears of Iranian attacks on ships, keeping pressure on global oil prices. Analysts have warned that if the strait remains blocked for an extended period, or if Iran imposes tolls on vessels passing through the waterway, oil prices could stay elevated in the near term.
U.S. crude inventories rise unexpectedly – API
Separately, data from the American Petroleum Institute (API) showed that U.S. crude stockpiles rose by 10.26 million barrels last week, far exceeding expectations for a 1.3-million-barrel draw and following the previous week’s 2.3-million-barrel increase, suggesting softer demand conditions.
API chief executive Mike Sommers highlighted the broader supply risks tied to the ongoing conflict.
According to Sommers, reopening the Strait of Hormuz remains “the critical piece” needed to stabilize global energy markets, warning that without the restoration of shipping flows, oil prices could continue rising across major consuming regions.
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