Oil prices flipped dramatically to the downside Wednesday afternoon after President Trump said he had been assured that killings of protesters by the Iranian regime had stopped.
“We’ve been told that the killing in Iran is stopping — it’s stopped,” Trump said to reporters during a gaggle at the White House, according to Bloomberg. “And there’s no plan for executions or an execution.”
Prices on Brent crude (BZ=F), the international benchmark, had picked up more than 2% throughout Wednesday’s session to trade above $66.60, a price not seen since September, before collapsing to a loss of more than 1.5%. As of 3:30 p.m. ET, the crude product was trading below $64.50.
West Texas Intermediate crude (CL=F), the US benchmark, moved similarly, climbing more than 2% to trade above $62.30 before reversing to lose 1.7% and trade below $60.20.
Trump’s comments come after news reports that the regime in Iran was preparing to begin executing protesters involved in the mass uprising that has swept through the Islamic Republic since the end of December. Human rights organizations and the Iranian regime itself are reporting that thousands of people have been killed.
After jumping through the early morning, prices had remained flat through the mid-day before ticking up after reports from Reuters and The Guardian that US military action — whether airstrikes or a cyber attack — was imminent.
In a post on Truth Social on Monday afternoon, President Trump announced that any country conducting business with Iran would face a 25% tariff on any business done with the US, effective immediately. The next morning, the president said in a second post that the Iranian regime would “pay a big price” and said to protesters, “HELP IS ON ITS WAY.”
And on Tuesday, in an interview with CBS News, Trump vowed “very strong action” if Iran were to begin executing protesters.
Iran, which controls the Strait of Hormuz, a crucial global chokepoint for seaborne crude oil flows, produces more than 3 million barrels and exports around 1.2 million barrels per day, according to energy analysts. The country also sits on the world’s third-largest store of proved reserves, only behind Venezuela and Saudi Arabia.