Oil tumbles over 4% as Trump signals final stages of Iran deal

Oil prices dropped sharply on Wednesday, recording their largest single-day decline in over a month. The selloff was triggered by comments from President Donald Trump indicating that the United States is close to finalizing a diplomatic agreement with Iran, alongside real-time maritime tracking data showing a tentative resumption of oil tanker traffic through the critical Strait of Hormuz.

International benchmark Brent crude futures slid approximately 4.6% to trade slightly above $106 per barrel.

Concurrently, U.S. West Texas Intermediate (WTI) crude futures fell 4.3%, slipping back below the psychological threshold of $100 per barrel.

The downturn retraced a portion of the steep geopolitical risk premium that has kept energy markets highly volatile since regional hostilities broke out in late February.

Speaking to reporters on Wednesday, President Trump suggested that a diplomatic breakthrough was imminent.

The remarks followed his last-minute decision to cancel a major wave of military strikes against Iranian targets that had been scheduled for the previous day.

"We’re in the final stages of Iran—we’ll see what happens," Trump said, according to a report by Agence France-Presse.

"Either have a deal or we’re going to do some things that are a little bit nasty, but hopefully that won’t happen. We’re going to give this one shot. I’m in no hurry. Ideally I’d like to see few people killed, as opposed to a lot. We can do it either way."

The White House’s optimistic tone echoed statements made by Vice President JD Vance on Tuesday, who noted that negotiators had "made a lot of progress" and indicated that intelligence suggested the Iranian regime was actively seeking an exit ramp.

Trump elaborated that the pause in military actions came at the explicit request of several Gulf state leaders, who assured the administration that a framework agreement was within reach.

In Tehran, official rhetoric from military hardliners remained combative.

The state-owned Tasnim news agency reported that the Islamic Revolutionary Guard Corps (IRGC) warned of severe retaliation across the Middle East if the U.S. launched fresh offensives.

"If aggression against Iran is repeated, the regional war that had been promised will this time extend beyond the region," the IRGC stated in a public release on Wednesday, threatening "crushing blows in places you do not expect."

Compounding the downward pressure on crude futures were concrete signs of easing logistics constraints at the world’s most critical energy chokepoint.

According to ship-tracking metrics, a South Korean-flagged supertanker hauling Kuwaiti crude oil successfully entered the Strait of Hormuz early Wednesday morning, representing the first commercial passage by a South Korean vessel since the onset of the conflict.

The South Korean carrier trailed closely behind two Chinese supertankers navigating the same path.

Maritime analysts noted that if all three vessels complete their voyages without incident, Wednesday would log the highest single-day volume of crude oil movement through the waterway in nearly three months.

However, maritime intelligence specialists urged caution regarding the apparent reopening.

Arsenio Longo, founder of maritime intelligence firm HUAX, noted that the three supertankers followed a specific route designated by Tehran as a controlled lane.

The positioning indicates that the Iranian regime is maintaining administrative control over the traffic, feeding reports that certain nations, including China, may be negotiating independent safe-passage agreements directly with Iranian authorities.