BEIJING, April 2 - Oil prices dropped sharply Thursday on expectations that President Donald Trump will announce a scaled-down U.S. military posture in Iran.
Brent crude futures fell $1.16, or 1.15%, to $100 per barrel by midday GMT. U.S. West Texas Intermediate (WTI) slipped $1.41, or 1.41%, to $98.71.
Trump hinted at a near-term end to the conflict during remarks to Reuters ahead of his scheduled national address.
“The market is pricing in a de-escalation,” said IG market analyst Tony Sycamore. “Investors are betting on reduced geopolitical risk.”
Still, uncertainty remains over the Strait of Hormuz, a critical shipping lane. A formal ceasefire ensuring safe passage has yet to be secured, raising concerns about continued exposure for regional allies and energy infrastructure.
Tensions persist. On Wednesday, an oil tanker leased to QatarEnergy was struck by an Iranian missile in Qatari waters, according to Doha’s defense ministry.
The International Energy Agency warned that ongoing disruptions may begin affecting European economies this month. Europe has so far been insulated by pre-war fuel contracts.