Oil prices fell sharply on Monday evening after US President Donald Trump suggested the conflict with Iran could be nearing an end.
Brent crude dropped to $89.20 a barrel, down more than $30 from the night before, following an interview with CBS News in which Trumpsaid: "I think the war is very complete, pretty much."
The comments lifted US stock markets, with the Dow Jones IndustrialAverage closing up 0.5% at 47,740.80 points after earlier falling toits lowest level since late November.
Trump also claimed Iran has "no navy, no communications" and "no air force," saying the United States was "very far" ahead of his initialfour to five week estimated time frame.
On the Strait of Hormuz - a key chokepoint for global oil and gas supplies largely blocked by Iran - Trump said he was consideringtaking control.
Later on Monday, he wrote on his Truth Social platform that if Iranacted in a way that stopped oil flowing through the Strait of Hormuz, "they will be hit by the United States of America TWENTY TIMES HARDERthan they have been hit thus far."
Fears of supply disruptions had pushed Brent crude above $120 abarrel early Monday, the highest level since 2022. The current priceis now slightly below Friday's level but remains higher thanpre-conflict prices, when Brent traded around $70 a barrel.
The spike in oil prices has stoked concerns about economic growthsetbacks.
Relief came on Monday after reports that the G7 group ofleading Western industrialized countries is considering releasingnational oil reserves to help stabilize the market.
These reserves are rarely tapped and are typically used only duringmajor supply crises.
A decision on the move has not yet been made, according to French Finance Minister Roland Lescure.
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