Rabat – Oil prices fell sharply on Thursday after US President Donald Trump suggested that violence in Iran had decreased and that a US military response was not likely in the near term.
Brent crude for March delivery dropped 4.15% to $63.76 a barrel, while West Texas Intermediate (WTI) for February delivery fell 4.56% to $59.19.
Trump, who had previously threatened intervention in response to Iran’s crackdown on protests, offered a softer message at a White House event on Wednesday.
When asked whether military action was off the table, he said Washington would “watch it and see” how events unfold. He added that “the killing has stopped,” citing reports from sources in Iran.
The White House confirmed Thursday that Tehran had suspended plans to execute 800 protesters that had been scheduled for Wednesday.
Analysts said markets interpreted the comments as a signal that tensions in Iran might ease, reducing the risk premium that had lifted prices in recent days.
Oil also faced pressure from supply-side developments. The US has moved to take control of Venezuelan oil resources after the capture of President Nicolás Maduro, completing a $500 million sale, the first since Washington assumed oversight of the sector.
Further sales may follow in the coming weeks.
Traders had priced in the possibility of a military escalation in the Middle East, a region crucial to global energy supply.
With that threat appearing less likely and additional supply entering the market, the structure of oil prices became fragile once again.
Investors now watch for any signals that could reverse the calm, knowing that even small changes in the region can affect global prices.
