By Nora Redmond
The White House announced that President Donald Trump will be giving an address on the war on Wednesday.
Oil prices dropped sharply Wednesday after a volatile day of trading as investors assessed the likelihood of war ending and of tanker traffic resuming through a contested waterway.
The key Brent oil futures contract traded as low as $98.35 before bouncing higher. The contract fell 2% to $101.81 per barrel as the lead WTI contract fell 2.5% to $98.79.
It comes after an announcement that President Donald Trump will give a public address to provide an update on the war in Iran at 9 p.m. Eastern.
On Tuesday, Trump said the U.S. military would leave Iran within &#34;two or three weeks.&#34; He added that once there is certainty the regime won't be able to develop a nuclear weapon, &#34;we'll leave whether we have a deal or not.&#34; The president claimed that Iranian leaders were &#34;begging to make a deal.&#34;
The comments were followed by Iranian President Masoud Pezeshkian's own assertion in a call to the president of the European Council, António Costa, that Tehran was also willing to bring the conflict to a close but only if there are guarantees to &#34;to prevent the recurrence of aggression.&#34;
&#34;While it wasn't clear if these comments represented a material change in Iran's position - indeed, in large part they reiterated demands floated by Tehran last week - they helped drive an extension of the rally that emerged amid signals that the US may be looking for offramps out of the war,&#34; Jim Reid, global head of macro research and thematic strategy at Deutsche Bank, wrote in a note on Wednesday.
Meanwhile, uncertainty remains over the future of the Strait of Hormuz and when disruptions to exports will ease. Trump reportedly told aides he was willing to end the war even if the trade route remains mainly closed. Late on Tuesday, the head of Iranian Parliament's National Security Committee, Ebrahim Azizi, wrote in a post on X: &#34;The Strait of Hormuz will certainly reopen, but not for you; it will be open for those who comply with the new laws of Iran.&#34;
&#34;Moves in oil are the one to watch,&#34; analysts at JPMorgan wrote in a note on Wednesday. &#34;All told, supply remains the question.&#34;
While transit through the strait picked up at the end of March, with slightly more than 25 ships passing through, it remained significantly below the average last year of 1,100 ships, strategists at BCA Research, led by Felix-Antoine Vezina-Poirier, wrote in a note.
-Nora Redmond
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(END) Dow Jones Newswires
04-01-26 0444ET

Brent oil futures fell sharply, trading as low as $98.35, as investors reacted to President Trump's upcoming address on the Iran war. The contract dropped 2% to $101.81 per barrel amid uncertainty over the conflict's resolution and tanker traffic through the Strait of Hormuz. Trump indicated U.S. military withdrawal from Iran could occur soon, while Iranian leaders expressed willingness to negotiate, contingent on guarantees against future aggression. Analysts noted that oil supply remains a critical concern, with transit through the strait significantly below last year's averages.

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Brent oil futures fall as low as $98 ahead of Trump's address on Iran war