Oil Prices Drop as Trump Delays Iran Attack, Easing Supply Fears

Oil prices dropped over 3 percent on Thursday, marking their first decline in six days, as concerns about instability in Iran eased following US President Donald Trump's indication that he would delay any military action against the country.

Brent, the benchmark for two thirds of the world's oil, was trading 3.14 per cent lower to $64.43 a barrel at 8.20am on Thursday. West Texas Intermediate, the gauge that tracks US crude, retreated 3.21 per cent to $60.03 per barrel, The Caspian Post reports, citing The National.

The US leader has repeatedly threatened Iran’s leadership over the killing of protesters. “We were told that the killing in Iran is stopping, and there’s no plan for executions,” Mr Trump said from the Oval Office on Wednesday, without disclosing the source for the information. “The killing has stopped. The executions have stopped.”

“I’ve been told that on good authority. We’ll find out about it. I’m sure if it happens, I’ll be very upset,” he added.

Crude prices fell about 20 per cent in 2025 as geopolitical and economic pressures affected markets. Iranian unrest is “adding upward pressure” to oil prices, alongside attacks near the Caspian Pipeline disrupting Kazakhstan’s exports, compounding delays from harsh winter weather and mooring damage, Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, said in a research note on Wednesday. She added that once temporary supply disruptions fade, prices may drift back towards a bearish trend.

Kazakhstan's Foreign Ministry said three tankers were hit en route to the marine terminal of the Caspian Pipeline Consortium in the Black Sea on Tuesday.

Iran is the world’s seventh largest producer of crude. Nationwide protests have rocked the country for weeks, and activists say thousands have been killed amid a government crackdown. Rights groups have put the death toll at more than 2,500 people. On Wednesday, authorities held a mass funeral for security forces personnel killed during the unrest.

Protests have evolved from complaints about Iran's dire economic situation to calls for regime change. Authorities have accused the US and Israel of backing and instigating violence and chaos.