Oil tumbles 4% as Trump remarks ease investor worries of a US strike against Iran
- - Oil tumbles 4% as Trump remarks ease investor worries of a US strike against Iran
Ines FerréJanuary 15, 2026 at 9:28 PM
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Oil prices tumbled more than 4% on Thursday as investors perceived the threat of US military action against Iran to have eased following President Trump’s latest remarks about the regime’s handling of widespread protests.
International pricing benchmark Brent crude (BZ=F) slipped to $63.76 per barrel, while West Texas Intermediate (CL=F) fell to $59.19 per barrel.
Crude prices reversed sharply Wednesday afternoon after Trump said, "We've been told that the killing in Iran is stopping," easing expectations of imminent US intervention.
Those remarks contrasted with Trump's earlier warnings toward Tehran, in which he said Iran's ruling regime would "pay a big price" for its violent response to anti-government protests.
Up until Trump's tone shifted, oil had surged nearly 10% over a five-session span to a two-month high, with traders betting that rising unrest in Iran and a potential US strike could trigger supply and flow disruptions for OPEC's third-largest producer.
Iran produces more than 3 million barrels and exports around 1.5 million barrels per day. The country also has control over the Strait of Hormuz, a global chokepoint for oil flows.
Thursday's pullback in crude prices highlighted how quickly the geopolitical risk premium can unwind once markets price in a lower chance of a military strike.
"Still, past history would show that Iran is famous for not keeping promises and the likelihood for more rhetoric is still very high keeping both WTI & Brent crude futures in a volatile trade," Dennis Kissler, senior vice president of trading at BOK Financial, wrote in a note on Thursday.
"Near term however, it was tensions in Iran that led the market up and easing tensions is leading it down," he noted.
Iranians attend an anti-government protest in Tehran, Iran, on Jan. 9, 2026. (UGC via AP) ()
Despite Thursday's drop, Brent and WTI futures remain up more than 2% year to date, buoyed in part by geopolitical tensions following the Trump administration's military operation that resulted in the US taking Venezuelan leader Nicolás Maduro into custody and seizing control of the country's oil reserves.
The administration has also publicly renewed its interest in acquiring Greenland, a move that has drawn European diplomatic pushback, raising concerns of an eventual military takeover of the Arctic territory.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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