Oil prices plummeted by the most in more than a month on Wednesday after President Trump declared the US is in the “final stages” of a deal with Iran and several tankers transited the Strait of Hormuz.

Brent crude futures sank 4.6% to around $106 per barrel, while US West Texas Intermediate crude declined 4.3% to below $100.
Trump told reporters on Wednesday that the US was close to a deal with Iran after canceling military action the day before.

“We’re in the final stages of Iran — we’ll see what happens,” Trump said Wednesday, per AFP. “Either have a deal or we’ll do some nasty things, but hopefully not.”
He continued, “We’ll try this. No rush. I prefer few deaths to many. We can do either.”

Vice President JD Vance stated on Tuesday that the US has made significant progress in negotiations with Iran, stating that the Iranians are interested in a settlement.

According to the state-owned Tasnim news agency, Iran threatened Wednesday of “crushing blows in places you do not expect” in the Middle East if the US resumed military action.

“If aggression against Iran is repeated, the regional war that was promised will this time extend beyond the region,” the IRGC declared Wednesday.

After President Trump canceled a big round of strikes against Iran planned on Tuesday at the urging of Gulf state leaders, who he said had persuaded him a settlement was nigh, the IRGC made its comments.

Oil prices fell on Wednesday as evidence suggested some traffic through the Strait of Hormuz, the conflict’s epicenter and the world’s most important energy chokepoint, may be resuming.