Oil prices fall in choppy trade as Trump addresses the U.S. on Iran war

Oil fell in a volatile session as traders awaited U.S. President Donald Trump's address to the nation on Iran, with markets seeking clarity on whether the American leader will signal a path toward de-escalation.

U.S. West Texas Intermediate crude futures for May dropped 0.43% to $98.42 a barrel as of 9:15 p.m. ET. International benchmark Brent crude was flat at $101.08 per barrel.

Earlier on Wednesday, Trump said in a post on Truth Social that Iran had asked for a ceasefire, raising hopes for more oil tanker movement through the Strait of Hormuz. Traffic in the vital strait, which used to see 20% of the world's oil and gas flows through, has effectively ground to a halt since the U.S.-Israel war against Iran began on Feb. 28.

Iran's "New Regime President" has asked the U.S. for a ceasefire, a request will only be considered if the Strait of Hormuz is "open, free, and clear," Trump said. "Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!"

The Islamic Republic, however, has denied Trump's claim, saying that the waterway won't be reopened based on the U.S. leader's "absurd displays" and that the key transit route remains "decisively and dominantly under the control of the IRGC Navy."

Brent

The two sides have frequently contradicted each other's claims about the existence and status of peace-deal talks since the war started. Trump has also sent conflicting signals, reportedly saying negotiations were close to producing a peace deal, but the U.S. was also prepared to escalate fighting by sending thousands of troops to the region.

Brent oil dipped below $100 per barrel for the first time in a week after Trump said Tuesday evening that he expected the U.S. military to wind down operations against Iran in "two or three weeks" and appeared to be declaring victory even without a negotiated deal with Iran. "We'll be leaving very soon," he said.