Global oil prices fell Monday after U.S. President Donald Trump signaled that the ongoing war involving the United States, Israel and Iran could end sooner than expected, easing fears of a prolonged conflict that could disrupt global energy supplies.
In an interview with CBS News, Trump said the campaign against Iran was progressing faster than anticipated.
“We’re very far ahead of schedule,” Trump said in a phone interview, adding that the operation was “very complete, pretty much.” He had previously predicted the conflict could last four to five weeks.
Markets reacted quickly. The international benchmark crude price, which had surged close to $120 per barrel earlier in the day amid fears of supply disruptions, fell back to around $90 after Trump’s remarks and signals that major economies were ready to intervene if necessary.
Finance ministers from the Group of Seven (G7) said they were prepared to act to stabilize energy markets, although they stopped short of announcing a release from strategic petroleum reserves.
According to reports, U.S. officials have discussed a potential joint release of 300 million to 400 million barrels from global reserves — roughly a quarter of the 1.2 billion barrels currently held by major economies — if prices spike further.
Energy markets had been rattled by disruptions in the Strait of Hormuz, a critical shipping route that carries about one-fifth of the world’s oil supply. Shipping traffic through the strait has slowed dramatically since the conflict began, though Trump claimed the route was reopening to vessels.
The war, now in its tenth day, has triggered one of the largest oil market shocks in decades. Analysts at Rapidan Energy Group said the disruption could surpass the scale of the Suez Crisis in terms of immediate market impact.
Meanwhile, fighting continued across the region.
Iranian Foreign Minister Abbas Araghchi dismissed the U.S. and Israeli campaign, calling it “Operation Epic Mistake” in a social media post and warning that Tehran still had “many surprises in store.”
U.S. and Israeli forces have carried out thousands of strikes inside Iran since the conflict began, while Iranian missiles and drones have targeted military installations and infrastructure across the Middle East.
Iran also named Mojtaba Khamenei, son of Supreme Leader Ali Khamenei, as the country’s new supreme leader following escalating threats against Iran’s leadership. The appointment drew mixed reactions domestically, with reports of dissent in parts of Tehran.
The conflict has already caused significant casualties across the region. Iranian officials say about 1,300 people have been killed in strikes inside the country, while attacks across neighboring states have killed dozens more.
Energy infrastructure has also been affected. Bahrain’s state energy company declared force majeure after Iranian drones struck its refinery complex, while regional air defenses have intercepted several missiles aimed at targets in Saudi Arabia and Turkey.
Relief for Nigerians?
The drop in oil price will be good news for Nigerians who have faced rapidly rising prices of petrol and diesel in the last few days.
Major refiner Dangote Refinery announced prices hikes three times in the last week. After raising depot price to N995 a litre on Sunday, leading to retail price of N1085, the company announced another hike on Monday to N1175, pushing retail rate above N1200 per a litre.
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