Global oil markets saw one of their most dramatic reversals on Monday as prices erased earlier gains of nearly 30 percent and ended the session lower.
The international benchmark Brent Crude fell by 2.41 percent, dropping $2.23 to around $90 per barrel. Meanwhile, West Texas Intermediate declined by $4.18, or about 4.6 percent, to $86.72 per barrel.
Earlier in the day, crude prices had surged amid fears that escalating tensions between Iran and the United States could disrupt global energy supplies, particularly shipments passing through the Strait of Hormuz, a key route for Middle Eastern oil exports.
However, prices quickly reversed after Donald Trump suggested that the situation with Iran was “very complete,” easing immediate concerns about a broader conflict or supply disruption.
The remarks triggered a sharp sell-off in crude futures, wiping out the earlier rally within hours.
Market analysts said the initial price surge appeared to be driven largely by geopolitical risk premiums rather than actual supply disruptions. Oil exports from Iran continued during the period, with much of the crude reportedly heading toward Asian markets, particularly China.
During the volatile session, oil futures swung by roughly $32 between an intraday high of around $120 per barrel and a low of just under $89. The movement marked one of the largest daily price swings since the 2020 Oil Market Crash, when oil prices briefly turned negative due to collapsing demand during the COVID-19 crisis.
The sudden drop in crude prices may have mixed implications across the energy sector. Upstream oil producers could face pressure on margins after adjusting spending and hedging strategies during the price spike, while industries such as refining and aviation could benefit from lower fuel costs.
Despite the sharp decline, analysts say markets remain highly sensitive to geopolitical developments, and further volatility cannot be ruled out if tensions in the region escalate again.
