09.03.202623:20:30UTC+00Oil Retreats on Trump Comments

WTI crude futures fell back below $90 per barrel on Tuesday after having surged to nearly $120 in the previous session. The pullback came after US President Donald Trump signaled that the conflict with Iran may be nearing an end and that the US military operation is progressing more quickly than initially planned. Trump also indicated he intends to waive certain oil-related sanctions and direct the US Navy to escort tankers through the Strait of Hormuz in an effort to stabilize prices. Further weighing on the market, G7 finance ministers said the group “stands ready” to release oil from strategic reserves if needed, though no barrels have been released so far. Crude prices had spiked on Monday after major Middle Eastern producers began cutting output in response to disruptions in the Strait of Hormuz. With tanker traffic severely constrained and storage facilities filling rapidly, several key producers — including Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq — have started to scale back production.