Oil markets took a cautious step back on Thursday, as traders weighed the impact of geopolitics against a sharp rally the day before.
President Donald Trump’s public frustration with climbing crude prices added a political twist to a market already rattled by Middle East tensions.
Oil Prices Retreat After Sharp Surge
By late morning in New York, Brent crude lost 34 cents, or 0.5%, and traded at $69.43 a barrel.
Simultaneously, U.S. West Texas Intermediate dropped 18 cents, or 0.3%, to $67.97.
Trump Criticises Oil Price Rise
Earlier that day, Trump addressed the spike during a White House event and openly challenged the market’s trajectory.
“I don’t like – the oil prices have gone up just a little bit over the last few days,” he said.
“It’s gonna keep going down a little bit, right? Because we have inflation under control.”
His remarks signalled political pressure to limit further gains.
Middle East Tensions Spark Spike
Just one day before, oil benchmarks had soared more than 4%—their largest jump in over two months.
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This spike followed the U.S. government’s decision to withdraw personnel from the Middle East due to rising regional tensions.
That move reignited fears of supply disruption, prompting traders to flood the market with buy orders and drive prices to their highest since early April.
Analysts Predict Correction
However, several analysts stepped in and warned that the rally might have gone too far.
Alex Hodes of StoneX Energy pointed out that technical indicators placed the market in overbought territory.
Therefore, traders likely began taking profits, anticipating a short-term correction.
Uncertainty Over Iran Talks
Meanwhile, Trump intensified concerns by casting doubt on Iran’s commitment to halting uranium enrichment.
He admitted feeling less confident about progress in nuclear talks and reminded reporters of his willingness to act militarily if diplomacy collapsed.
Consequently, geopolitical uncertainty continued to linger over the market.
White House Signals Pressure
Despite Wednesday’s surge, Trump’s intervention—and the market’s natural cooldown—shifted momentum.
Now, oil traders must navigate a landscape shaped not only by Middle Eastern volatility but also by clear signals from the White House that rising prices won’t go unchallenged.