BREAKING: NO MORE $120, Brent Crude Oil Price Falls Below $90
Oil prices dropped sharply on Monday, with Brent Crude slipping below $90 a barrel as markets reacted to comments from Donald Trump suggesting the U.S. conflict with Iran could soon wind down.
In a phone interview with CBS News, Trump said the military operation was “very complete” and running well ahead of its initial four- to five-week timeline, adding that Iran had effectively lost its navy, communications and air force.
The remarks appeared to calm markets after days of geopolitical tension that had driven crude prices sharply higher. U.S. equities also rebounded, with the S&P 500 and the Nasdaq Composite both rising more than 1% after earlier losses, as investors bet the conflict may not escalate further.
Brent crude, the global oil benchmark, slid below $90 a barrel after the presiden’t comments. It had surged overnight, hitting its highest intraday level since mid-2022. The U.S. benchmark dropped to about $85 a barrel, after surging above $119 earlier.
Stocks opened the session lower, but pared declines as the oil slide moderated, then rallied into the close after Trump’s latest remarks. The Nasdaq composite led indexes with a gain of 1.4%. The Dow industrials rose 239 points after being down almost 900 points in early trading.
One turning point came when France’s finance minister said the Group of Seven advanced economies was prepared to release strategic oil reserves to stabilize the global energy market if necessary. The remarks came after an extraordinary meeting of the group and as Gulf oil producers cut production amid shipping disruptions in the Strait of Hormuz.
The bond markets remained volatile, with the 10-year U.S. Treasury yield pushing above 4.2% before retreating back near 4.1%. The dollar turned lower late in the day. Investors in recent days have feared that the energy-price spike could feed inflation and dampen growth, raising the specter of stagflation.
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