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Global energy prices fell sharply Tuesday while equities recovered after U.S. President Donald Trump suggested the conflict involving Iran could conclude sooner than expected and signaled temporary relief on sanctions affecting Russian oil exports.
Brent crude traded around $92.3 per barrel and U.S. West Texas Intermediate hovered near $88, marking a retreat of roughly 7%. The pullback followed extreme volatility a day earlier when oil surged about 30% to above $119 before sliding to nearly $84 during the same trading session.
Global equity markets recovered as energy prices eased after days of sharp increases tied to disruptions in the Gulf region.
Asian markets moved higher Tuesday after previously falling due to soaring fuel costs. Japan’s Nikkei 225 climbed about 2.7%, South Korea’s Kospi rebounded 5.5%, Hong Kong’s Hang Seng rose 1.9%, and China’s Shanghai Composite gained 0.5%.
European markets also pointed upward, with the pan-European Stoxx 600 advancing 0.8%. In contrast, the broad U.S. S&P 500 index edged slightly lower by 0.2%.
Precious metals strengthened as stabilizing energy prices reduced demand for the U.S. dollar. Gold rose 0.8% to around $5,180 per ounce. Silver climbed 2% to $88.9, while platinum gained 0.7%. Palladium moved in the opposite direction, declining 0.6% to $1,686.
Cryptocurrencies also recovered. Bitcoin returned to the $70,000 level with a daily gain of 3.8%, while the total market value of digital assets increased 2.6% to $2.4 trillion.
Markets began stabilizing earlier Monday after reports that finance ministers from the Group of Seven were considering using strategic oil reserves to ease supply shortages. Trump later added that Washington would temporarily waive certain sanctions affecting Russian oil exports as part of efforts to increase supply and reduce prices.
"We're also waiving certain oil-related sanctions to reduce prices," Trump told reporters after talks with Russian President Vladimir Putin. "We have sanctions on some countries. We're going to take those sanctions off till this straightens out," he added.
White House officials indicated the move would temporarily allow Russian oil shipments to India that were previously restricted due to sanctions linked to the war in Ukraine.
The U.S. president also suggested the ongoing military campaign against Iran was progressing faster than expected. "I think the war is very complete, pretty much. They have no navy, no communications, they've got no air force," Trump said.
The conflict between U.S.-Israeli forces and Iran has disrupted energy flows across the Gulf region and significantly affected activity in the Strait of Hormuz, a waterway that typically handles about one fifth of global oil shipments.
Trump also reiterated that the United States was prepared to escort oil tankers through the strait and suggested sanctions relief could remain in place if the conflict ends.
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