Global oil markets declined sharply after U.S. President Donald Trump announced there is no current plan for executions in Iran and that violence has ceased, easing fears of military escalation. The move prompted a broad market reassessment of risk premiums tied to Middle East tensions.
- Brent crude dropped 3.2% to $87.40 per barrel
- WTI crude fell 2.9% to $83.65 per barrel
- Halliburton (HAL) shares declined 1.8%
- Schlumberger (SLB) shares dropped 2.3%
- Raytheon Technologies (RTX) lost 1.5% in value
- Market reaction driven by reduced geopolitical risk premium
Crude oil prices fell across global benchmarks following statements from President Donald Trump in the Oval Office, where he declared that 'the killing in Iran is stopping' and confirmed there is 'no plan for executions.' This marked a notable shift from earlier rhetoric surrounding potential retaliation over recent regional incidents. The announcement immediately triggered a retreat in risk premiums embedded in energy pricing. Brent crude futures dropped 3.2% to settle at $87.40 per barrel, while U.S. West Texas Intermediate (WTI) fell by 2.9% to $83.65 per barrel. These declines represent the largest single-day drop in both benchmarks since December 2025, reflecting investor recalibration of geopolitical risk. The sharp reversal followed weeks of rising oil prices fueled by speculation about military action in the region. The reduction in perceived threat levels led to significant pullbacks in equity markets linked to defense and energy sectors. Shares in major oil equipment firms such as Halliburton (HAL) and Schlumberger (SLB) dipped 1.8% and 2.3%, respectively, while defense contractors like Raytheon Technologies (RTX) saw a 1.5% decline. Investors appear to be reallocating capital away from high-risk assets amid the renewed stability narrative. Markets now focus on the sustainability of de-escalation. While the immediate catalyst was Trump’s statement, broader diplomatic channels remain under observation. Analysts caution that without formal agreements or verification mechanisms, volatility could resurge quickly should conditions change.