Oil prices swing sharply as US tensions with Iran rise and fall

Oil prices surged to multi-month highs, with Brent crude topping $70 a barrel, as tensions escalated between the US and Iran. Trump sent a naval armada toward Iran and imposed new sanctions on tankers accused of transporting Iranian oil, raising fears of a military conflict that could disrupt global oil supplies.

Prices then fell sharply, dropping over 3%, after Trump changed his tone and signaled a willingness for dialogue over Iran's nuclear program, easing immediate fears of an attack. During this period, the US also seized several Russian-flagged oil tankers linked to Venezuela as part of a separate sanctions enforcement campaign.

Analysts noted that unrest in Iran poses a significant risk to oil supplies. Iran's state oil company signed $2.5 billion in domestic deals to boost production, while the country's president accused the US and Europe of being driven by greed for Iran's oil and gas.