By Nora Redmond
President Donald Trump said at the annual congressional picnic that the war in Iran would end &#34;very quickly.&#34;
Oil futures declined on Wednesday after President Donald Trump reaffirmed that the war in Iran would end &#34;very quickly.&#34;
U.S. benchmark West Texas Intermediate's front-month contract fell almost 5% to $102.58 a barrel (CL.1) (CLM26), while international benchmark Brent crude' delivery for July edged over 1% lower to $109.72 a barrel (BRN00) (BRNN26).
&#34;We're going to end that war very quickly. They want to make a deal so badly, they're tired of - this should have happened for 47 years,&#34; Trump told a group of Congress members at the White House's annual congressional picnic on Monday.
&#34;Somebody should have done something about it. And it's going to happen, and it's going to happen fast. And you're going to see oil prices plummet,&#34; he added.
On Tuesday, two Chinese tankers carrying crude oil traversed the Strait of Hormuz. Another, a South Korean vessel, was passing through it, according to a Reuters report. Jim Reid, of Deutsche Bank, noted that this marks &#34;one of the busiest days since the closure.&#34;
On Monday, U.S. Treasury Secretary Scott Bessent announced an additional 30-day extension to waive sanctions and allow certain countries to purchase Russian oil and petroleum products that are already at sea.
&#34;This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed,&#34; Bessent wrote in a post on X. &#34;This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries.&#34;
The countries affected by the extension haven't yet been announced by the White House.
Meanwhile, the U.K. has also eased its sanctions, with a trade waiver allowing the importation of Russian oil refined into diesel and jet fuel in third countries. Just on Tuesday, it signed a Group of Seven statement reiterating its &#34;unwavering commitment&#34; to impose &#34;severe costs&#34; on Russia, following the country's invasion of Ukraine in 2022.
Airlines throughout the U.K. and the rest of the world have canceled flights and increased the cost of luggage as the continued closure of the passage has driven up jet fuel prices.
&#34;With key sticking points remaining, particularly with regards to Iran's nuclear programme and Hormuz access, markets are increasingly preparing for a war of attrition, meaning higher energy prices, inflation and central bank rates for longer,&#34; Matthew Ryan, market strategist at Ebury, wrote in a note on Wednesday.
-Nora Redmond
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(END) Dow Jones Newswires
05-20-26 0648ET

Oil prices fell sharply after President Trump stated the war in Iran would end 'very quickly,' with U.S. benchmark West Texas Intermediate dropping nearly 5% to $102.58 a barrel. The announcement coincided with increased oil tanker activity in the Strait of Hormuz and a 30-day extension of sanctions waivers for certain countries purchasing Russian oil. Analysts warn that unresolved issues regarding Iran's nuclear program may lead to prolonged high energy prices and inflation.

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Oil prices decline after Trump reaffirmed he would end the war in Iran 'very quickly'