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Oil almost hit $120.
Now it’s back near $91.
Why?
Trump says the US–Israel operation against Iran could end “very soon.” Markets quickly priced in the possibility that the conflict may not escalate further.
The war had pushed energy prices higher because of fears around the Strait of Hormuz, the route that carries a large share of global oil supply. Any disruption there immediately shocks the market.
For now, the signal is simple:
War escalation → oil spikes
Signs of resolution → oil cools