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Global energy markets witnessed sharp volatility after oil prices reversed course dramatically following a strong rally that had pushed crude to extremely high levels. Prices quickly retreated from their recent peaks as market sentiment shifted, triggering a wave of profit-taking and easing fears about prolonged supply disruptions.

U.S. crude, represented by West Texas Intermediate, fell sharply from a high of around $119.4 per barrel to approximately $89.94. The drop significantly reduced earlier gains that had exceeded 15%, ultimately turning into a decline of roughly 5%. The sudden shift reflects how sensitive energy markets remain to geopolitical developments and political statements that may influence global supply routes.

Meanwhile, global benchmark Brent crude also moved lower, sliding about 2.2% to trade near $90.64 per barrel. The pullback came after traders reassessed the risk of major supply disruptions in the Middle East, which had initially driven the surge in prices during earlier trading sessions.

A major catalyst behind the rapid shift in market sentiment was a statement by U.S. President Donald Trump. In comments that surprised many investors, he indicated that the conflict was effectively nearing its conclusion from his perspective, emphasizing that Iran’s military capabilities had been significantly weakened. These remarks eased immediate fears of a prolonged escalation that could threaten oil shipments from the region.

Investor confidence was further strengthened by separate reports suggesting that the United States currently has no intention of launching a ground military operation inside Iran. The absence of plans for a large-scale escalation helped calm markets, prompting traders to reduce their bullish bets on oil. At the same time, U.S. equity markets reacted positively, with stocks gaining momentum as geopolitical risk premiums began to fade.

Additional details emerged during a phone interview between Trump and the American network CBS News. During the call, Trump stated that shipping activity through the strategic waterway of Strait of Hormuz had already started to resume, with vessels gradually moving through the passage once again. He also mentioned that his administration is considering stronger measures to secure the waterway, including the possibility of asserting full control to guarantee the safety of international trade routes.

These developments helped cool the aggressive buying momentum that had previously pushed crude prices to extreme levels overnight. Earlier in the trading session, West Texas Intermediate had briefly touched $119.48 per barrel before retreating significantly. By the time official trading concluded, the contract had settled near $94.77 per barrel, illustrating the rapid pace at which market sentiment can change in response to geopolitical signals.

At the same time, major global economies began coordinating efforts to stabilize the energy market. Finance ministers from the Group of Seven announced their readiness to implement emergency measures if necessary to support global oil supplies. Among the options being discussed is a coordinated release of crude from strategic petroleum reserves held by member countries.

Energy ministers from the group are expected to hold a virtual meeting to discuss the logistical aspects of such a move. The potential intervention is intended to offset supply disruptions and reassure markets that additional barrels could be made available if the situation worsens. News of this possible action also contributed to downward pressure on oil prices after Brent crude had earlier approached $119.50 per barrel.

Despite the recent pullback, analysts warn that risks to the global energy market remain elevated. According to estimates from the consultancy Rapidan Energy, any significant disruption to shipping through the Strait of Hormuz would represent one of the largest threats to global energy security, given that roughly 20% of the world’s oil consumption passes through this narrow maritime corridor.

Similarly, analysts at Rystad Energy suggest that oil prices could remain elevated if geopolitical tensions persist. Their projections indicate that Brent crude could stabilize above $110 per barrel if the crisis continues for two months. In a more prolonged scenario lasting four months, prices could surge toward $135 per barrel.

For now, market participants are closely monitoring diplomatic developments and the upcoming discussions among the Group of Seven. The decisions taken by global policymakers in the coming days may prove critical in determining whether oil markets stabilize or continue to experience sharp volatility in the near term.