Trump's Iran Statement Sinks Oil Prices Amid Strait of Hormuz Uncertainty

Oil prices took a hit on Wednesday as uncertainty over the Middle East conflict weighed heavily on markets. US President Donald Trump's statement that the US could end its campaign against Iran within two to three weeks only added to the uncertainty.

The front-month Brent contract for June dropped by $1.06, or 1%, to $102.91 per barrel at 1106 GMT, after falling to a session low of $98.35. U.S. West Texas Intermediate crude futures for May slipped $1.44, or 1.4%, to $99.94 ​per barrel.

Analysts expect that energy flows through the Strait of Hormuz would be slow to return to levels before the conflict even if a ceasefire were announced.

The closure of the Strait of Hormuz has already had a significant impact on oil supply, with OPEC's crude oil output falling by 7.5 million barrels per day in March compared with the previous month.