Oil Prices Crash After Trump Declares Iran War 'Practically Over'

Global oil prices experienced a dramatic surge and subsequent crash this week, driven by political upheaval in Iran and statements from U.S. President Donald Trump. The price of Brent crude briefly soared past $100 per barrel, its highest level in over three years, following the selection of a new hardline Supreme Leader in Tehran.

The spike was triggered by the ascension of Mojtaba Khamenei, son of the late Ali Khamenei, to Iran's leadership. This political shift stoked fears of prolonged regional instability, causing a 50% jump in U.S. Oil prices and prompting investors to brace for even sharper increases in energy costs.

The rally was short-lived. In a series of remarks, President Trump asserted that the conflict with Iran was nearing its conclusion. "I think the war is practically over," Trump stated. "They have no navy, no means of communication, they have no air force." He claimed Washington had "significantly outpaced" initial forecasts that predicted a 4-5 week war duration.

"We have already defeated Iran. But not enough. We are determined to achieve absolute victory over this terrorist regime," the U.S. President added.

These declarations prompted a sharp reversal in the oil market, with prices plummeting from their multi-year highs. The volatility led the G7 nations to announce their readiness to tap into strategic petroleum reserves to cover any potential supply shortfalls.

In a related development aimed at calming markets, the Trump administration is reportedly considering easing oil sanctions against Russia. According to sources familiar with the matter, an announcement could come as early as Monday (U.S. Time). The goal is to curb the sharp rise in global energy prices attributed to the U.S.-Israel conflict with Iran.

This follows action on March 6th by U.S. Treasury Secretary Scott Bessent, who indicated Washington could lift sanctions on more Russian oil. This came a day after the U.S. Granted a 30-day license allowing continued sales of Russian oil currently at sea to India.

Meanwhile, Iranian Foreign Minister Abbas Araghchi addressed American citizens directly via social media platform X. He placed blame for economic strain in the U.S.—including rising gasoline prices, costlier mortgages, and falling retirement accounts—squarely on Israel and its allies in Washington.

"Iran does not want to harm ordinary Americans... The rise in gasoline prices... Is the direct responsibility of Israel and its followers in Washington," Araghchi wrote.

The geopolitical tensions have escalated military posturing, with French President Emmanuel Macron reportedly dispatching warships to the Middle East to "ensure safe passage for vessels through the Strait of Hormuz."