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Global crude oil prices dropped despite the airstrikes’ resurgence between the United States and Iran.
Checks by The Eastern Updates showed that Brent and West Texas Intermediate crude declined by 2 percent to $76 and $71 per barrel, respectively, at the time of reporting from $77 and $73.
The respite in global oil prices on Thursday comes after US President Donald Trump had earlier announced an end to the ceasefire with Iran, which led to a price spike on Wednesday.
Read Also: Trump Warns Iran Blockade Could Last Long As Oil Prices Soar
Recall that on Wednesday, the Trump-led US launched fresh deadly airstrikes against Iran. Thereafter, in a retaliatory strike, Iran hit US allies Bahrain, Kuwait, and Qatar.
President Donald Trump said that a US naval blockade against Iran could last months, leading oil prices Wednesday to spike to their highest in more than four years.
With diplomacy between Iran and the United States at a standstill after false starts, Trump spoke by phone with Russian President Vladimir Putin, who warned him of “damaging consequences” if the United States and Israel resume their war on Iran.
Meeting oil executives, Trump contended that the blockade of Iranian ports — which Tehran has demanded must end before any deal — was more effective than bombing.
Trump, at the meeting that took place Tuesday, discussed his efforts “to alleviate global oil markets and steps we could take to continue the current blockade for months if needed and minimize impact on American consumers,” a White House official said on condition of anonymity.
Trump, speaking to Axios, said of the naval action on Iran: “They are choking like a stuffed pig. And it is going to be worse for them.”
Read Also: Trump Prolongs Iran Ceasefire To Allow More Talks Time
Brent oil futures soared another 7.6 percent to $119.69, the highest price since the early days of the Ukraine war in 2022.
Iran has sought to extract a price for being attacked by exerting control over the Strait of Hormuz, the narrow waterway through which one-fifth of global oil typically transits.
Trump has faced intense political pressure to end the war, which is unpopular even with much of his base and has increased costs for American consumers paying at the pump.
The Pentagon confirmed to lawmakers on Wednesday that the war has already cost $25 billion to US taxpayers.
Top US officials including Vice President JD Vance twice aborted trips last week to Pakistan to negotiate with Iran, which has voiced doubts about Trump’s sincerity for diplomacy.
