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Oil prices fell sharply by 13% following U.S. President Donald Trump's comments predicting a de-escalation in Middle East tensions. Trump's remarks, which suggested reduced conflict risks in the region, triggered a sell-off in energy markets as investors anticipated lower demand for crude amid eased geopolitical concerns. The drop pushed Brent crude below $60 per barrel and WTI under $55, marking one of the largest single-day declines in recent months. The market reaction highlights the sensitivity of oil prices to geopolitical developments. Reduced conflict risks in the Middle East typically lower supply disruptions and ease inflationary pressures, prompting investors to offload energy assets. Traders are now reassessing their positions in crude futures and related equities, with some shifting capital to safer assets like gold and U.S. Treasuries. The move also impacts global economies reliant on oil imports, as lower prices could reduce energy costs and stimulate consumption. For the Gulf and broader MENA region, the price drop could ease fiscal pressures on oil-dependent economies, potentially delaying production cuts by OPEC+. Investors should monitor upcoming OPEC+ meetings and regional political developments for clues on future price direction. Technical indicators suggest key support levels for Brent crude are now at $58 and $55, with resistance at $63.50.
