WTI crude oil futures slumped more than 10% to around $84 per barrel on Tuesday, retreating sharply from nearly $120 in the previous session, as global leaders signaled their readiness to intervene to contain the impact of the war in Iran on energy markets.
International Energy Agency Executive Director Fatih Birol said an “extraordinary meeting” had been convened to review market conditions, while G7 nations asked the agency to prepare scenarios for a potential release of emergency oil reserves.
US President Donald Trump also moved to calm markets, saying he would waive certain oil-related sanctions and deploy the US Navy to escort tankers through the Strait of Hormuz. He added that he remained open to talks with Iran.
Even after the steep pullback, oil prices are still more than 50% higher year-to-date, reflecting persistent concerns that Middle Eastern supplies could face severe disruption. Several major producers in the region have already cut output by millions of barrels per day as the conflict impedes exports and strains logistics.