Doha: Oil prices fell by more than 11% on Tuesday, following remarks by US President Donald Trump that the war in the Middle East could soon come to an end, easing concerns over prolonged disruptions to global oil supplies. Brent crude fell $11.16, or 11%, to $87.80 a barrel, while US West Texas Intermediate (WTI) crude dropped $11.32, or 11.9%, to $83.45 a barrel.

According to Qatar News Agency, both benchmarks recorded their largest daily losses since March 2022, after hitting four-year highs the previous day. The sharp decline in oil prices reflects market reactions to the possibility of a resolution in the Middle East, a key region for oil production and exportation, which has been embroiled in conflict affecting supply chains.

President Trump's statement has led to speculation about potential peace talks or agreements that could stabilize the region. The anticipation of reduced geopolitical tensions is seen as the primary driver behind the sudden drop in oil prices, as investors reassess the risk premiums that have been factored into the market over recent months.

The oil market has been on edge due to the ongoing conflict, with fears that prolonged instability could lead to significant supply disruptions. However, the President's comments have injected a sense of optimism, prompting a reassessment of future supply and demand dynamics in the global oil market.