Oil prices dropped sharply during early trading in Asia after comments by President Donald Trump raised hopes that the conflict involving Iran could come to an end. He said negotiations were already underway and suggested that both sides were eager to reach an agreement. However, officials in Iran quickly rejected these claims, calling them untrue and misleading.
Brent crude fell by about 6.6%, reaching $97.56 per barrel. Meanwhile, U.S. oil prices also dropped by more than 5.5%, to $87.20. The sudden decline reflects how sensitive global markets are to political developments, especially in the Middle East.
President Donald Trump said key figures, including JD Vance and Marco Rubio, were involved in discussions aimed at ending the war. He also claimed that recent strikes had forced major changes in Iran’s leadership and repeated his stance that Iran would not be allowed to develop nuclear weapons. However, leaders in Tehran have consistently denied any communication with the United States and accused Washington of trying to influence global markets.
Several media outlets, including The New York Times and Reuters, reported that the U.S. may have presented Iran with a detailed proposal to end the conflict. According to these reports, the plan includes reopening the Strait of Hormuz as a safe international shipping route and lifting economic sanctions on Iran in return for certain commitments. However, the details have not been officially confirmed.
Despite talk of peace, military actions have continued. The Israel Defense Forces said it had launched a new round of attacks targeting the infrastructure of the “Iranian terror regime.” At the same time, Iran reportedly fired missiles toward Israel. Tensions have also spread to Lebanon, where warnings were issued for civilians to leave certain areas due to possible strikes.
Even with ongoing conflict, stock markets across Asia rose. Indexes such as Japan’s Nikkei 225 and South Korea’s Kospi climbed by more than 2%, while Australia’s ASX 200 also saw gains. Markets in Hong Kong and mainland China recorded smaller increases. Investors appear to be cautiously hopeful that the situation might improve.
Experts say the drop in oil prices suggests traders now believe the risk of long-term supply disruptions has reduced. However, analysts warn that this trend may not last unless real progress is made. Stable and safe shipping through the Strait of Hormuz is seen as a key factor, as around 20% of the world’s oil passes through this route daily.
Oil prices had surged earlier in the conflict, briefly rising above $100 per barrel. Although prices have now eased, they remain higher than before the fighting began. Governments around the world have already taken steps to reduce the impact of high energy costs on their economies.
Business leaders are also concerned about the future. Executives from major companies have warned that continued instability could lead to shortages and economic trouble. If oil prices rise again and stay high, it could slow global growth or even push the world into a recession.
