Brent crude futures fell below $95 per barrel on Tuesday, retreating from nearly $120 in the previous session, after US President Donald Trump signaled that the conflict with Iran may be approaching an end and that the US military operation is progressing ahead of schedule. Trump also announced plans to waive certain oil-related sanctions and to have the US Navy escort tankers through the Strait of Hormuz in an effort to stabilize oil prices.
Further easing upward pressure on prices, G7 finance ministers stated that the group “stands ready” to release oil from strategic reserves if needed, though no such action has yet been taken. Oil prices had spiked on Monday after major Middle Eastern producers began cutting output in response to disruptions in the Strait of Hormuz. With tanker traffic severely constrained and storage capacity filling quickly, several key producers — including Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq — have already started to curb production.