Oil prices reversed course and dropped after President Donald Trump indicated he might hold off on military action against Iran. Trump stated he received assurances that Tehran would cease its violent crackdown on widespread protests. This comment erased earlier gains in the crude market, which had been pricing in potential supply disruptions from the Middle East.

The price swing reflects the market's hypersensitivity to geopolitical risk in oil-producing regions. Any threat to the Strait of Hormuz, a critical shipping lane, typically sends shockwaves through global energy benchmarks. Traders are now weighing the likelihood of a de-escalation against the backdrop of ongoing civil unrest and international condemnation.

Investors will closely monitor statements from both Washington and Tehran for signs of lasting stability. While the immediate threat of U.S. military intervention appears to have lessened, the underlying tensions remain. The situation underscores the persistent volatility facing energy markets amid geopolitical flashpoints.