The US oil has been quite volatile for some time now, given the rising US-Iran War narratives. Oil prices have been lately delivering mixed signals, but the last two days have been particularly hectic as oil prices hit past $100, only to crash to $84 soon after Trump announced that his war with Iran is “nearly over.” However, the US oil prices have once again surged to $91, bringing the volatility back into the sector. What changed the momentum of the domain all of a sudden? Let’s explore.

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Oil Crashes, Then Picks Up Pace: What Is Going On?

The US oil prices are once again back in the mainstream, displaying violent price fluctuations. The past 24 hours have been particularly hectic for the commodity, bringing in mixed signals from US President Trump. Trump first announced how his war with Iran is now “nearly complete,” signaling the markets about a possible end to this prolonged war. This development led the US oil prices to relax, crashing down to normal price thresholds, nearly at $84.

“BREAKING: Step #7 of our “Conflict Playbook” appears to be near as President Trump signals a potential end to the Iran war. Oil prices are now down -30% in 16 hours.”

However, soon after, the oil markets went berserk again, as Trump announced a new precedent on Truth Social and X, stating how the US may “hit times 20 times harder” if the country does not open the Strait of Hormuz passage.

“If Iran does anything that stops the flow of oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far. Additionally, we will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back as a nation again—Death, Fire, and Fury will reign upon them—but I hope, and pray, that it does not happen! This is a gift from the United States of America to China and all of those nations that heavily use the Hormuz Strait. Hopefully, it is a gesture that will be greatly appreciated. Thank you for your attention to this matter!”

Worsening War Developments

In addition to this, Iran is also keeping its ground steady by announcing how Middle Eastern countries should expel US ambassadors if they wish to continue accessing the Strait of Hormuz passageway for trade, as KL revealed:

“BREAKING: Iran says any Arab or European country that expels the ambassadors of Israel and the US will have ‘full authority and freedom’ to pass through the Strait of Hormuz, per BBC. Details include: 1. Iran says this policy will begin tomorrow after a week-long shutdown. 2. Just minutes prior, President Trump said the US is considering taking control of the Strait of Hormuz. 3. Nearly 20% of the global oil supply remains offline despite signs of an end to the Iran war. Oil prices are down -$33/barrel in 20 hours.”

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