A day after President Trump predicted a quick end to the war with Iran, crude oil prices plummeted, falling from a high of $119.50 a barrel on Monday morning to the lower $80 in the U.S.
It didn’t mean there was any drop in the attacks by the U.S. and Israel on Iran’s missile and drone sites. Secretary of War Peter Hegseth said Tuesday “will be our most intense day of strikes.”
Prices fell more than 11% on Tuesday and it was described as the steepest percentage drop in 4 years. It followed the President’s remarks in a CBS News interview where he said he thought the war against Iran was “very complete” and Washington was “very far ahead” of his initial four- to five-week estimated time frame.
Global benchmark, Brent crude fell $11.16 or 11% before settling at $87.80 a barrel.
West Texas Intermediate, the U.S. standard, dropped $11.32 or 11.9% a barrel and closed at $84.45 a barrel on the New York Mercantile Exchange.
Prices fell even lower earlier in the day after it was revealed by Energy Secretary Chris Wright that the U.S. Navy had escorted one oil tanker through the Strait of Hormuz which had been closed for the past week under the threat of attacks by Iranian missiles and drones.
“The U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz to ensure oil remains flowing to global markets,” Wright said.
Gasoline prices had yet to reflect any decline and the U.S. average for a price of regular stood Tuesday at $3.53, 6 cents more than on Monday. The nationwide average for diesel fuel rose 13 cents to a Tuesday average of $4.78, according to AAA.
Oklahoma’s average gasoline price was $3.01 following a 4-cent one-day gain while diesel fuel sold for $4.08 per gallon, reflecting a 3-cent increase.
Gasoline prices in Oklahoma City rose 3 cents since Monday to reach an average of $3.04 per gallon while Tulsa’s average rose 2 cents to reach $3.02 per gallon.
Oklahoma energy stocks battled Tuesday with losses including a more than 6% drop for Empire Petroleum Corp. One lone standout with a large gain was USA Rare Earths whose stocks rose more than 9% for the day.
Alliance Resource Partners LP