Oil falls toward $100 as Trump claims Iran requested a ceasefire

Yesterday 16:00

By: Dakir Madiha

Oil falls toward $100 as Trump claims Iran requested a ceasefire

Oil markets endured another turbulent session on Wednesday as traders struggled to reconcile Donald Trump's signals of an imminent end to the U.S.-Iran war with the reality of continued fighting and a largely closed Strait of Hormuz. Brent crude, which had opened higher during Asian trading, reversed sharply and fell around 4% to approximately $100 per barrel, while West Texas Intermediate, the U.S. benchmark, dropped to around $97 per barrel.

The swings followed remarks Trump made Tuesday to reporters, in which he said U.S. military operations in Iran would conclude within two to three weeks, claiming the mission's primary objective of neutralizing Iran's nuclear program had been achieved. The White House confirmed Trump would address the nation on the conflict Wednesday evening.

Trump escalated diplomatic signals Wednesday morning with a post on Truth Social stating that Iran's new president had asked the United States for a ceasefire, describing him as far less radicalized and more intelligent than his predecessors. Trump said Washington would only consider the request once the Strait of Hormuz was open, free, and clear, warning that the U.S. would continue striking Iran in the meantime. Iranian officials provided no immediate confirmation, and Tehran has consistently denied requesting negotiations or a ceasefire throughout the conflict.

The statements followed a Wall Street Journal report published Monday evening revealing that Trump had told advisers he was prepared to end the conflict without demanding full reopening of the strait, a disclosure that briefly pushed oil prices lower before they rebounded.

Wednesday's volatility closed out Brent's record monthly gain of 64% in March, the largest since at least 1988, according to LSEG data. The war, which began on February 28 with U.S. and Israeli strikes on Iran, has disrupted approximately 20% of global oil and liquefied natural gas supplies due to Iran's effective blockade of the Strait of Hormuz.

Analysts warn that a ceasefire would not rapidly normalize energy markets. Around 2,000 vessels remain stranded near the strait, according to the International Maritime Organization, and shipping experts caution that months may be needed to clear the backlog and restore supply chains. Shipping analyst Ringbakken told Al Jazeera that restoring normal maritime supply chains could take months given the existing backlog.

The broader economic toll continues to mount. U.S. gasoline prices surpassed $4 per gallon on Tuesday, up 35% since the war began, while diesel climbed to $5.42, a 44% increase. Asian markets recovered Wednesday, with Japan's Nikkei 225 jumping 5.2% and South Korea's Kospi surging 8.4%, following the S&P 500's strongest session in nearly a year on Tuesday. With Trump's April 6 deadline for strikes on Iranian energy infrastructure approaching and no confirmed diplomatic channel between Washington and Tehran, oil markets face another news-driven week of turbulence.