March 10 (Reuters) – Oil prices fell on Tuesday after hitting their highest levels in more than three years in the previous session, as U.S. President Donald Trump predicted a war in the Middle East could end soon, easing concerns about prolonged disruptions to global oil supplies.
Brent crude futures fell $6.51, or 6.6%, to $92.45 a barrel by 0018 GMT, while U.S. West Texas Intermediate (WTI) crude fell $6.12, or 6.5%, to $88.65 a barrel.
Oil prices soared above $100 a barrel on Monday, with Brent touching $119.50 and WTI hitting an intraday high of $119.48, the highest levels since mid-2022, as Saudi Arabia and other producers cut supplies amid the widening U.S.-Israeli war with Iran, raising concerns about serious disruptions to global supplies.
Prices later eased after Russian President Vladimir Putin called Trump and shared proposals aimed at a quick resolution to the war with Iran, easing concerns about long-term supply disruptions, according to Kremlin aides.
Trump told CBS News on Monday that he believed the war against Iran was “very complete” and that Washington was “way ahead” of his initial projected time frame of four to five weeks.
Iran’s Revolutionary Guards (IRGC) responded to Trump by saying they would “decide the end of the war” and that Tehran would not allow “one liter of oil” to be exported from the region if the United States and Israel continued to launch attacks, state media said on Tuesday, citing a spokesman for the group.
But the comments did little to boost oil prices, which are also under pressure as Trump considers easing oil sanctions on Russia and releasing emergency crude stockpiles as part of a package aimed at curbing a surge in global oil prices amid the Iran conflict.
“Given the events of the past 24 hours, I expect crude oil to remain highly volatile and trade within a broad range between $75 and $105 in the coming sessions,” IG market analyst Tony Sycamore said in a note.
Gulf oil producers have begun cutting output as the U.S.-Israeli war against Iran disrupts shipping in the region. Over the weekend, Iraq cut output from its main southern oil fields by 70% to 1.3 million barrels per day, while Kuwait Petroleum Co. also began cutting production and declared force majeure.
Sources said on Monday that Saudi Arabia has now begun reducing production in addition to the production cuts.
G7 countries said on Monday they were prepared to take “necessary measures” to deal with a surge in global oil prices, but stopped short of committing to releasing emergency reserves.
(Reporting by Anushree Mukherjee in Bengaluru; Editing by Jamie Freed)