Oil tumbles as Trump soothes Iranian intervention concerns

Oil prices fell by more than 3% on Thursday after US President Donald Trump said that the killing of protesters during demonstrations in Iran had begun to subside, easing concerns about potential military action against Iran and the risk of disruptions to oil supplies.

Brent crude futures dropped by $2.19, or 3.3%, to $64.33 a barrel by 12:21 GMT. US West Texas Intermediate crude also fell by $2.06, or 3.3%, to $59.96 a barrel, after having lost as much as 4.6% earlier in the session.

Trump said he had been informed that killings linked to the crackdown on protests in Iran had started to decline, and that he believed there were currently no plans for mass executions, adopting a “wait-and-see” stance after previously hinting at the possibility of intervention.

Analysts noted that these remarks reduced the risk premium that had built up in markets over recent days. Brent crude had reached $66.82 a barrel on Wednesday, its highest level since September.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said: “While the situation remains fragile, the immediate risk premium has eased, but it is unlikely to disappear completely given the ongoing risk of supply disruptions.”

In a related development, a US official said on Wednesday that the United States had begun withdrawing some of its personnel from military bases in the Middle East, after a senior Iranian official said Tehran had informed neighboring countries that it would target US bases if Washington launched an attack.

Prices also came under further pressure after data from the US Energy Information Administration showed that US crude oil and gasoline inventories rose by more than expected last week.

In another development, three sources said Venezuela has begun rolling back oil production cuts it had imposed under US sanctions, as crude exports resumed.

On the demand side, the OPEC said on Wednesday that oil demand in 2027 is likely to rise at a pace similar to this year, and published data indicating that supply and demand are nearing balance in 2026, in contrast to other forecasts that point to a supply surplus.

Government data showed that China’s crude oil imports rose by 17% year on year in December, while total imports in 2025 increased by 4.4%, with average daily oil imports reaching record levels.