U.S. crude, known as West Texas Intermediate crude, dropped by as much as 14 percent, one of the biggest intraday swings on record, before partially recovering.
The decline followed Trump’s announcement that planned strikes on Iran’s energy facilities had been postponed, and that discussions to end the conflict were underway.
However, Iran has denied that any talks are taking place, adding uncertainty to the situation.
Trump later said a deal could be reached within days and expressed confidence that oil prices would fall further if an agreement is secured.
He also suggested that the Strait of Hormuz — a key route for global energy supply — could soon reopen.
The waterway has been largely blocked since the conflict began, disrupting a significant share of global oil and gas shipments.
Despite the price drop, analysts warn that markets remain unstable due to ongoing tensions and uncertainty over supply.
