Oil prices plunge 30 pc from record high, slip below $90 a barrel

New Delhi: Oil prices declined sharply on Tuesday, trading below $90 per barrel after US President Donald Trump predicted the war in the Middle East could end soon.

Brent futures declined as much as 10.85 per cent to an intraday low of $88.22 per barrel from the previous close of $98.96 per barrel. At the last count (around 11 am), they were trading at $92.50, down 6.44 per cent.

Meanwhile, crude oil futures were trading at $87.94 per barrel, down more than 7 per cent. However, they touched an intraday low of $84.43, down 29.33 per cent from the all-time high of $119.48.

The easing in oil prices came after the American President hinted at de-escalation in the Middle East conflict.

On Monday, oil prices had climbed past $100 a barrel as the conflict involving Iran disrupted energy flows through the Strait of Hormuz and rattled global markets.

Earlier, Trump said on his social media platform that higher oil prices were a temporary cost linked to confronting Iran’s nuclear threat.

“Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A. and world safety and peace,” Trump wrote on Truth Social. “ONLY FOOLS WOULD THINK DIFFERENTLY!”

Oil prices declined after Trump also stated that the American campaign against Iran would conclude “very soon,” describing victory as the point when Tehran no longer has the capability to develop weapons that could threaten the United States, Israel, or their allies.

Trump also cautioned Iran against attempting to disrupt global energy supplies through the Strait of Hormuz, one of the world’s most critical oil shipping routes.

“The Strait of Hormuz is going to remain safe,” he said, adding that the US has a strong naval presence in the region. “We have a lot of Navy ships there.”

Earlier this month, the United States carried out major strikes on Iranian targets as part of a joint military effort with Israel aimed at weakening Tehran’s military strength and nuclear capabilities.

Moreover, Finance Minister Nirmala Sitharaman said in Parliament on Monday that the recent rise in global crude oil prices is unlikely to have a significant impact on inflation in India for now, noting that inflation currently remains close to the lower end of the target range.

IANS