Oil prices pare losses slightly after 10% drop

Oil prices trimmed some losses on Tuesday after dropping by more than 10%, as investors assessed remarks by US President Donald Trump that the war with Iran would end soon.

Futures for Brent crude for May delivery fell 6.73%, or $6.66, to $92.3 per barrel at 08:50 a.m. Makkah time, paring some of their losses after declining by more than 10% earlier in the session.

Meanwhile, US WTI crude futures for April delivery dropped 6.87%, or $6.51, to $88.26 per barrel, following Monday’s session, which saw significant price volatility.

This comes after Brent crude climbed close to $120 per barrel on Monday amid concerns over the impact of the Middle East conflict on supply, as shipping through the Strait of Hormuz remains extremely limited.

Prices later retreated as the world’s largest economies considered releasing emergency reserves, with losses deepening following the US president’s remarks about the war.

Trump said yesterday that the US would lift some oil-related sanctions to help ensure adequate supplies and lower prices, noting that oil prices had not risen as much as feared, according to Reuters.

He also warned that Iran would face a strike twenty times stronger than what it has experienced so far if it attempts to halt oil flows through the Strait of Hormuz.