Oil prices fell 3% on Thursday after comments from U.S. President Donald Trump calmed fears that an American strike on Iran could be imminent.
Brent crude oil futures, the global benchmark, dipped by 2.8%, or $1.87, to settle at $64.63 a barrel. Front-month West Texas Intermediate crude lost $1.79, or 2.9%, to trade at $60.23 a barrel.
Brent crude price
Speaking to reporters on Wednesday, Trump said he had been informed by “very important sources” in Iran that “the killing has stopped.”
“There’s no plans for executions, I’ve been told that on good authority,” he said, adding that the White House would watch how the situation unfolds.
Hundreds of people have reportedly been killed after mass unrest in Iran was met with a violent crackdown by the Islamic Republic’s security forces. Trump has repeatedly threatened to intervene if civilians are killed or executed by the state.
Oil prices jumped on Tuesday after Trump canceled meetings with Iranian officials and promised protesters that “help is on its way,” and extended gains on Wednesday amid mounting concerns that a U.S. strike on the country was looming.
Those fears were fueled by a report from news agency Reuters that some personnel had been directed to leave the U.S. military’s Al Udeid Air Base in Qatar by Wednesday evening. The BBC also reported that some British personnel were being moved out of the base.
On Tuesday, the U.S. government issued an advisory to American citizens to leave Iran by land to Armenia or Turkey.
“Leave Iran now. Have a plan for departing Iran that does not rely on U.S. government help,” the U.S. Virtual Embassy in Iran said. “If you cannot leave, find a secure location within your residence or another safe building. Have a supply of food, water, medications, and other essential items.”
In a note on Thursday morning, Deutsche Bank’s Jim Reid said Trump’s comments about the killing in Iran stopping had been taken by markets as “a signal that the U.S. might hold off on a potential military response.”
“[But] there’s clearly lingering caution, not least given the unexpected timing of U.S. strikes on Iran in June 2025,” he noted. “Brent crude is still clearly above its lows below $60/bbl last week, but Trump’s comments had a clear impact.”
“Bear in mind as well that Iran is a more significant oil producer than Venezuela, producing 4% of the world’s total in 2023, so developments there have the potential for wider spillovers in the oil market,” Reid added.