Global oil prices fell sharply on Thursday after U.S. President Donald Trump said killings of protesters in Iran had stopped. Traders saw the comments as reducing the risk of U.S. military action against Iran, easing fears of supply disruption from the oil-producing nation.
By early Asian trading, Brent crude futures dropped over 3% to around $64.33 a barrel, while U.S. West Texas Intermediate (WTI) fell more than 3% to near $59.95 per barrel. The decline reversed most gains from the previous session, when prices rose on geopolitical concerns.
Read more: Iran protests kill over 2,500, Trump pledges ‘help’
Analysts said Trump’s remarks lowered the geopolitical “risk premium” supporting oil prices and signaled a possible oversupply in the near term. Rising U.S. crude and gasoline inventories also weighed on the market, reflecting stronger stockpiles than expected.
Venezuela has resumed oil exports and reversed production cuts imposed under previous U.S. restrictions, further easing supply worries. Meanwhile, OPEC projected steady global oil demand in 2026, suggesting a near balance between supply and consumption.
Read more: Trump urges Iranians to keep protesting, says ‘help is on its way’
China’s crude imports rose 17% in December from a year earlier, with total 2025 imports up 4.4%, reaching record daily volumes. Despite the short-term drop, analysts expect demand growth to support prices over the coming months.