Crude oil prices snapped their six-day winning streak, falling over 2.5% in early Asian trading after US President Donald Trump indicated he may hold off on attacking Iran for now. The decline marked a significant reversal in the recent rally that had pushed oil prices higher amid geopolitical tensions in the Middle East.

Price Movement and Market Impact

Both major crude oil benchmarks experienced substantial declines during the trading session:

Speaking to reporters, Trump said he had been assured of Iran stopping the killing of protesters, which reduced the probability of an immediate US military response to the demonstrations against Supreme Leader Ayatollah Ali Khamenei. This development eased market concerns about potential disruptions to Iran's oil production and shipping lanes.

Geopolitical Context and Supply Concerns

Oil prices have been recovering from multi-year lows at the start of the new year, driven primarily by issues in Iran, the fourth-largest producer in OPEC+, along with the Venezuela crisis. This recovery followed five consecutive months of losses based on expectations of a supply glut in 2026.

Trump also mentioned having a "very good call" with acting Venezuela President Delcy Rodriguez, which included discussions about oil. The conversation adds another dimension to the complex geopolitical landscape affecting global oil markets.

Supply Data and Market Pressures

US government data revealed that crude stockpiles rose 3.4 million barrels last week, representing the highest build-up since early November. This inventory increase added additional downward pressure on oil prices, complementing the geopolitical developments.

Market Outlook and Expert Analysis

Robert Rennie, head of commodity research at Westpac Banking Corp, provided insight into potential price movements. "Geopolitically induced strength in Brent likely continues, and a test up to $75 is certainly possible," he stated. However, Rennie cautioned that the rally may be followed by a collapse when the "all-clear is sounded" or Khamenei's regime crumbles, drawing parallels to market movement during the Iran-Israel conflict in June.

The current price action reflects the market's sensitivity to geopolitical developments in key oil-producing regions, with traders closely monitoring both diplomatic developments and supply-side fundamentals.

U.S. crude oil futures experienced a significant decline in recent trading sessions, with prices falling more than $1.00 per barrel. The benchmark crude contract is currently trading around the $60.80 per barrel level, marking a notable downward movement in energy markets.

Current Market Position

The crude oil futures market has shown considerable volatility, with the recent price action bringing the contract to approximately $60.80 per barrel. This represents a substantial intraday decline of over $1.00, indicating selling pressure in the energy commodity sector.

Market Impact

The decline in crude oil futures reflects broader market dynamics affecting energy commodities. The price movement to the $60.80 level represents a significant shift from previous trading levels, with the market experiencing downward momentum during the trading session.

This price action in U.S. crude oil futures demonstrates the ongoing volatility characteristic of energy markets, with the commodity experiencing substantial intraday movements that impact both producers and consumers in the energy sector.