Oil stocks slid in overnight trading. Occidental, Battalion Oil down over 4%; BP, PBR, COP, Chevron, Exxon down over 1%.

Oil tumbled after US President Donald Trump signaled the Iran war will end soon, as the conflict in the Middle East upends global energy markets and sparks fresh concerns about an inflation crisis.

West Texas Intermediate crude oil futures plunged as much as 6.69% to $88.43 a barrel, following a volatile session on Monday that saw oil swing in the widest range since prices briefly turned negative during the depths of the pandemic. Trump said at a news conference in Florida that he plans to waive oil-related sanctions and have the US Navy escort tankers through the Strait of Hormuz.

“We’re looking to keep the oil prices down,” Trump told reporters late Monday. “They went artificially up because of this excursion,” he said, adding that he did not believe the conflict would be over this week.

Oil surged toward $120 a barrel on Monday after major producers in the Persian Gulf were forced to curtail output because of the effective closure of the Strait of Hormuz — a narrow waterway that typically handles a fifth of global crude flows. Prices pulled back later in the session as the world’s largest economies considered an effort to release emergency reserves.

The conflict, which is now in its second week and has sucked more than a dozen countries into the fray, has led to a surge in energy prices, including oil, natural gas and products such as gasoil. US retail gasoline has jumped to the highest level since August 2024, putting additional pressure on Trump.

The US president didn’t offer additional specifics on the plan to escort tankers or waive oil-related sanctions, beyond acknowledging he had discussed the topic with Russian President Vladimir Putin in a phone call earlier Monday. Last week, the Trump administration cleared the way for India to temporarily increase its purchases of Russian crude, reversing months of pressure on the trade.