Oil prices fall US Iran tensions ease as Trump signals troop withdrawal, pushing Brent crude lower despite ongoing regional risks

Global oil prices fell on Wednesday after Donald Trump signalled that the United States could withdraw its troops from Iran, raising hopes of a possible de-escalation in the ongoing conflict.

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Speaking in an interview with Reuters, Trump said the US would be “out of Iran pretty quickly” following a military campaign that began on February 28, although he declined to provide a precise timeline.

The development triggered a swift market reaction, with Brent crude dropping from about $115 on Tuesday to $101 by Wednesday evening.

West Texas Intermediate also declined to $99.32 during the same period.

Analysts said the decline reflects growing optimism that tensions in the Middle East could ease in the near term, reducing fears of prolonged supply disruptions.

Brent crude for May delivery was reported down by 1.9 per cent.

Despite the drop, oil prices remain more than 40 per cent higher than late February levels, when the conflict first erupted, underscoring lingering uncertainty in the global energy market.

Tensions remain elevated, with Islamic Revolutionary Guard Corps issuing threats against major American technology and industrial firms operating in the Middle East.

The group described companies such as Microsoft, Google, and Boeing as “legitimate targets,” alleging links to US and Israeli military operations.

The conflict has also disrupted shipping through the Strait of Hormuz, a critical global oil route, contributing to volatility in energy markets.

In response, Petrobras raised jet fuel prices by about 55 per cent, citing international price movements and exchange rate pressures.

In Nigeria, the Dangote Refinery has continued exporting aviation fuel and diesel to international markets despite the crisis. The refinery assured that domestic supply remains stable.

Meanwhile, petrol prices in parts of the South-West have declined to an average of N1,250 per litre, reflecting recent reductions in gantry prices.

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The situation remains fluid, with investors closely monitoring geopolitical developments that could further influence oil supply and pricing in the coming weeks.