Oil prices have experienced a dramatic decline, falling below 90 dollars per barrel after peaking near 120 dollars amidst escalating tensions in Iran. The day began with panic in the market as prices surged by 30% due to fears surrounding potential conflicts in the region. The stock markets also saw significant downturns as investors reacted to these developments.

The turning point came when U.S. President Donald Trump declared that the war was 'practically finished', a statement that shifted market perceptions and stabilized oil prices after initial fears. Along with these comments, rumors regarding a possible military action in the Strait of Hormuz fueled volatility throughout the trading session. This combination of factors led to a dramatic drop in prices, bringing Brent crude, the European benchmark, down significantly.

This unprecedented level of market instability highlights the sensitivity of oil prices to geopolitical events and the complex interplay between political statements and economic outcomes. As global economies remain tightly linked to oil prices, these fluctuations can have wider implications for energy markets and economic forecasts, signaling potential challenges ahead for both producers and consumers alike.