In a significant statement, US President Donald Trump declared that the military conflict with Iran is "effectively over." This announcement comes amid ongoing concerns regarding tensions in the Middle East, particularly around the Strait of Hormuz, a crucial shipping route for global oil supplies. Trump's remarks suggest a shift in US military strategy, indicating a potential halt to further military strikes against Iran for the time being.

Following Trump's declaration, global crude oil prices experienced a decline, reflecting eased fears of prolonged disruptions in oil supplies from the region. On Tuesday, Brent crude futures fell over 1% to $91.50 per barrel, while US West Texas Intermediate (WTI) futures dropped 1.24% to $85.77. This decline extends the previous session's losses, as Brent had already decreased by 5% in recent trading sessions due to the fluctuating geopolitical landscape.S2

While the immediate threat of military escalation appears to have diminished, analysts remain cautious about the stability of oil markets. The ongoing tensions in the Strait of Hormuz continue to loom large, as this area is vital for the transit of oil, and any resurgence of conflict could quickly impact global oil prices once again.S2