Oil Prices Drop after Surging to $119 as Trump Warns Iran on Shipments

Oil prices swung wildly, plunging from a four-year high of $119 to below $90 after President Trump signaled the Iran war could end soon, simultaneously threatening to hit Iran "twenty times harder" if it blocks the Strait of Hormuz.

Oil prices experienced one of the most volatile trading days in years on March 9, surging to a four-year high above $119 per barrel before tumbling back below $90 following conflicting signals from President Donald Trump about the duration of the U.S.-Israel war with Iran.

Brent crude futures spiked as high as $119.50 per barrel in early trading the highest level since 2022 as fears mounted that the conflict could lead to a prolonged disruption of shipments through the Strait of Hormuz, through which approximately 20% of the world's oil passes . Iran's Islamic Revolutionary Guard Corps declared it would not allow "one litre of oil" to leave the region if U.S. and Israeli attacks continued.

The dramatic reversal came after Trump told that the war was "very complete, pretty much" and suggested the conflict could end well within his initial four-week timeline. Brent crude subsequently fell to $91.58 per barrel, with West Texas Intermediate dropping to around $85.

However, Trump simultaneously issued a stark warning on Truth Social: "If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far."  He also announced Washington would waive some oil-related sanctions on select countries without naming them to ease supply shortages.

The G7 finance ministers held an emergency teleconference and signaled readiness to release strategic petroleum reserves if necessary. French Finance Minister Roland Lescure confirmed the group "stands ready" to stabilize markets.

Despite the pullback, oil prices remain significantly elevated roughly 30% above pre-conflict levels when Brent traded around $70 as the Strait of Hormuz remains effectively closed for a week.