U.S. crude oil futures were down about 2% to $89.40 by 8:05 a.m. ET. Brent futures, the international benchmark, lost 1.7% to $92.65 per barrel.
Trump told reporters late Monday that a deal to end the war with Iran could come in “two or three days” and the Strait of Hormuz would open “immediately” after an agreement. He has repeatedly said a deal with Tehran to reopen Hormuz is close, but such an agreement still has not materialized.
The fragile ceasefire implemented in April nearly unraveled this week, after Iran launched missiles at Israel in retaliation for its strikes in Lebanon.
Israel hit back with strikes on the Islamic Republic. Trump pressured Israel Prime Minister Benjamin Netanyahu to refrain from further attacks.
The violence spiked oil prices briefly Monday, but the volley of strikes appears to have ended without further escalation for now. Iran and Israel said they have ceased fire.
Oil prices have surged about 30% since the U.S. and Israel attacked Iran on Feb. 28. Tehran retaliated by attacking tankers in the Strait of Hormuz and mining the sea lane. Traffic through Hormuz has plunged as a consequence, triggering the biggest oil supply disruption in history.
Trump has sought to pressure Iran by imposing a naval blockade on its ports and vessels.
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