Oil drops to $85 per barrel after Trump signals Iran war nearing end

Oil prices have taken a significant dip after the United States (U.S.) President Donald Trump indicated that war with Iran was “almost over.”

U.S. crude oil prices, which surpassed the $100 per barrel earlier on Monday, fell significantly, around 6 percent, after President Trump’s statement and are currently around $85 per barrel.

Escalating geopolitical tensions after the U.S.-Israel launched joint military strikes against Iran pushed fuel prices to soar past the 2022 highs.

Following the attacks, Iran announced the closure of the Strait of Hormuz, a key passage through which a large portion of the world’s oil shipments pass.

Gulf countries were also forced to reduce production or completely shut down their oil refineries after Iran retaliated by launching missiles at U.S. bases in the Middle East, causing prices to skyrocket.

Speaking to CBS News on Monday, the U.S. president said: “I think the war is very complete, pretty much."

He added that Iran has no Navy left, no communication infrastructure and their air force have gone ineffective.

Trump continued: "Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones. If you look, they have nothing left. There's nothing left in a military sense.” 

Talking about the Strait of Hormuz, President Trump said, "Ship are moving through now but we are thinking of taking it over." 

Trump said he has someone in mind to replace the newly appointed Iranian Supreme Leader Mojtaba Ali Khamenei, but did not elaborate.