Global oil prices and equity in major energy companies declined on Wednesday after U.S. President Donald Trump indicated that the month-long conflict with Iran was approaching a conclusion. Traders reacted to Mr. Trump's comment that he expected the war to be over within "two to three weeks," driving a pullback in crude and prompting losses among oil majors.
Brent crude fell as low as $98.35 before trimming its losses and trading back above $102, reflecting market recalibration to the possibility of a quicker resolution to a conflict that has disrupted global energy supplies in recent months. The volatility underscored how geopolitical developments continue to feed into price swings for oil and related equities.
Shares of large energy companies moved lower in tandem with the fall in oil. In premarket trading by 04:54 ET (08:58 GMT), ExxonMobil and Chevron each dropped about 2%, and ConocoPhillips fell 1.9%. European oil names were also weaker, with BP and TotalEnergies each down roughly 2% and Italy's Eni losing approximately 2.7%.
Trump's remarks on Tuesday were among his most direct suggestions that he intends to bring the fighting to a close. He said: "Now we're finishing the job. I think in two weeks or maybe a few days longer, we'll do the job. We want to knock out everything they've got." He also said Iran would not need to reach a formal agreement with Washington for the war to end.
Markets beyond oil responded positively to the same comments. Asian indexes led the rally, with South Korea's Kospi jumping more than 8% and Japan's Nikkei rising 5.2%. Hong Kong's Hang Seng climbed 2%, and China's CSI 300 added 1.7%. European equities followed the uptrend, with the FTSE 100 up 1.7% and the Stoxx 600 rising 2.2% in early trading.
Gold extended recent gains as well, rising 1.3% to trade above $4,700 an ounce, marking its highest level in nearly two weeks after a 3.5% surge the previous day. The precious metal's move reflected continued demand for safe-haven assets amid ongoing uncertainty.
Mr. Trump was expected to address the U.S. at 9 pm ET on Wednesday.
Market context
- Energy sector - immediate negative pressure as crude prices fell and major oil stocks pulled back.
- Equities - broader stock markets rallied across Asia and Europe following comments suggesting the conflict could wind down.
- Commodities - gold continued to climb, extending gains made the previous day.
This movement illustrates how shifts in geopolitical outlooks can rapidly reprice both commodity markets and the shares of firms tied to them.