Oil Tanks as Trump Signals Iran Deal Imminent, Prices Plunge 6%
Oil markets cratered Thursday, with both Brent crude and West Texas Intermediate futures sliding more than 6% after President Donald Trump revealed that negotiations with Iran are in their “final stages,” fueling hopes of a détente in the Middle East, as traders priced in the prospect of Iranian oil returning to global markets. Trump tempered optimism with a stark warning—pledging “a little bit nasty” consequences if Tehran fails to reach a deal—but investors nonetheless rushed to unwind war premiums that had kept prices elevated for months.
The U.S. dollar simultaneously eased from a six-week high, reflecting growing confidence that Washington and Tehran may soon agree to end the conflict. Treasury Secretary Scott Bessent reinforced the bullish sentiment for energy consumers, calling current high bond yields and energy prices “transient” and vowing they will ease as the war winds down. In a post on X, Bessent urged allies to maintain pressure on Iran, while reaffirming the administration’s commitment to “aggressive and targeted” sanctions should negotiations collapse. For now, markets are betting on diplomacy—and betting big that cheaper oil is on the horizon.
