Trump's Iran War Remarks Spark Oil Price Reversal, Stocks Plummet

Crude oil prices experienced a wild reversal on Monday after US President Donald Trump signaled that the Iran war could end soon. The sudden shift in sentiment led to a sharp decline in oil stocks, with shares of Battalion Oil Corporation (BATL) falling by around 16%, Trio Petroleum (TPET) declining roughly 12%, and the United States Oil Fund (USO) ETF dropping more than 4%.

According to economist Peter Schiff, the reversal was largely driven by profit-taking tied to talk of reserve releases and Trump's comments. However, some analysts argue that the broader oil rally may still have room to run, citing ongoing geopolitical risks and potential for further price increases.

Petroleum analyst Patrick De Haan noted that U.S. diesel prices have climbed to about $4.73 per gallon, while gasoline averages roughly $3.53 per gallon. If crude continues to trade below recent spike levels, gasoline prices could stabilize or even start easing by the end of the week.

Despite the sudden reversal, some analysts remain bullish on oil's prospects, citing ongoing supply concerns and potential for further price increases.