Crude oil prices were approaching a collapse, and a decline was observed. Previously, crude oil traded above $100 amid tensions between the US and Iran, which created an inflation risk for import-dependent countries. However, following a signal from US President Donald Trump, prices began to fall, and the Brent Crude Price dropped below the $100 mark.
Of particular note was that US President Donald Trump simultaneously threatened Iran and predicted a drop in oil prices. Initially, he threatened to 'completely destroy' Iran if an agreement was not reached, but just a few hours after this warning, reports emerged of high-level meetings between the US and Iran. Trump again predicted an imminent crash in crude oil prices, and this began to materialize.
During his participation in UNGA, Donald Trump stated that Iran should be given a chance to become a better country, otherwise he would 'completely destroy this Islamic Republic' so quickly that they would have no chance of rebuilding. Later, on Tuesday, Trump shared information about an important meeting between American officials and Iranian representatives. He reported that Steve Witkoff and Gerard Kushner met with mediators for the Iran deal, and that 'many things are going very well.' This meeting lasted about three hours and was successful.
In his speech, Trump once again forecasted a significant drop in global crude oil prices. He stated that 'oil prices will soon fall sharply.' This statement came at a time when the conflict with Iran was affecting energy markets and remained the main topic at the UN conference. Furthermore, President Trump attempted to portray himself as a peacemaker while defending the US military campaign.
The immediate consequence of the serious warning, the negotiations on the US-Iran deal, and Trump's forecast of an imminent oil price drop was a sharp market movement. By the time of publication on Wednesday, the price of Brent Crude Oil on the international market was rapidly falling and trading around $98 per barrel. Additionally, WTI Crude Price fell to $89 per barrel, and Murban Crude Price also dropped significantly, approaching $108 per barrel.
It is worth noting that this is not the first time Donald Trump has predicted a crash in crude oil prices; previously, he had repeatedly stated that oil prices would decrease while threatening Iran or discussing progress in war negotiations with Iran.
While Trump predicts a fall in oil prices, Iran has put forward a condition for opening the Strait of Hormuz, which is the main cause of instability in the crude oil market. Iran stated that if the US accepts this condition, the Strait of Hormuz will be opened within seven days. A Reuters report, based on the words of a high-ranking Iranian official on Tuesday, indicated that Iran could reopen the Strait of Hormuz if the US reduces military pressure and lifts the blockade on Iranian ports. The official added that 'Tehran wants Washington to officially state that it desires a diplomatic solution and agree on timelines to advance this process.'
