Conflicting statements by Donald Trump about the Iran war have triggered extreme volatility in global oil markets, leaving traders uncertain and undermining confidence in price signals.
Global oil markets have been thrown into turmoil as traders struggle to interpret shifting statements from U.S. President Donald Trump regarding the war with Iran. Prices surged close to $120 a barrel before plunging below $90 after the president alternately suggested the conflict was a “small price to pay” for peace and later said the war was “very complete, pretty much.”
Traders said the conflicting messages have created extreme volatility, with one oil executive describing the situation as “almost a broken market.” Another trader said, “You don’t have any confidence that [Trump] knows what he wants to do,” as markets reacted sharply to each statement from the White House amid disruptions around the Strait of Hormuz.
Analysts say the uncertainty has rattled hedge funds and trading houses, with some suffering heavy losses as oil prices swing wildly. One analyst warned that “headlines remain unreliable,” adding that excessive volatility driven by political statements could destabilise the energy market and make trading increasingly risky.