Oil prices fell on Monday evening to below $90 per barrel after exceeding $117 at the start of trading, following statements by U.S. President Donald Trump in which he said that the war waged by Washington and Israel against Iran is “largely complete.” After oil prices surpassed the $117 per barrel level for the first time since July 2022, driven by fears of energy supply disruptions due to the war, prices began to decline slightly.
By 21:00 GMT, Brent crude reached $87.9 per barrel, down by about 4 percent, while West Texas Intermediate (WTI) recorded $84.2, falling by 6 percent. Earlier on Monday evening, Trump claimed in a phone interview with the American network CBS News that the war Washington is waging in cooperation with Israel against Iran is “largely over.”
Trump added that Iran no longer possesses “a naval fleet, communications, or an air force. Its missiles are scattered, and its drones are being destroyed everywhere, including inside factories,” considering that Iran has “nothing left” from a military perspective. The Israeli-American military actions against Iran have damaged energy supplies, amid an almost total halt in navigation through the Strait of Hormuz, with reports of hundreds of ships piling up on both sides as a result of increasing security risks.
On March 2, Ebrahim Jabbari, advisor to the Commander-in-Chief of the Iranian Revolutionary Guard Corps, announced that the Strait of Hormuz is closed and that any ships attempting to cross it would be attacked. Approximately 20 million barrels of oil pass through the strategic strait daily, and its closure has caused an increase in shipping and insurance costs, as well as a rise in oil prices, sparking fears of global economic repercussions.
Since February 28, Israel and the United States have been launching attacks on Iran, which have claimed the lives of hundreds of people, most notably Supreme Leader Ali Khamenei and security officials, while Tehran responds by launching barrages of missiles and drones toward Israel. Iran is also targeting what it describes as “American interests” in Gulf countries, Jordan, and Iraq with missiles and drones, causing deaths and injuries and damaging civilian objects, which the targeted Arab countries have condemned, calling for an end to these attacks.
