Oil prices experienced a tumultuous trading day, ultimately plunging after-hours following comments from US President Donald Trump regarding Iran. Trump’s remarks suggested a potential de-escalation of tensions, prompting a sharp reversal in the market after significant intraday volatility. The swings occurred as traders assessed the implications of recent events in Iran on global oil supplies.
During regular trading, West Texas Intermediate (WTI) crude experienced a massive US$28 range. Brent crude also saw substantial movement, settling below $US99 after hitting an intraday high of $US119.50. Earlier in the session, WTI futures surged as much as 31 per cent, fuelled by worries that disruptions in the Strait of Hormuz could significantly impact global oil shipments.
However, gains were pared back as major economies considered a coordinated release of emergency oil reserves. WTI settled up approximately 4 per cent before Trump’s comments triggered a sharp sell-off in after-hours trading. The decline saw WTI futures shed more than 10 per cent, briefly trading as low as $US81.19.
President Trump is scheduled to hold a press conference from Florida before returning to Washington. Traders will be closely monitoring any further developments that may affect market sentiment and future price movements.
