President Donald Trump said Tuesday that oil prices and financial markets have been rattled by escalating tensions in the Middle East but predicted energy costs will fall sharply once the conflict subsides.
Speaking during a White House meeting with German Chancellor Friedrich Merz carried live by Newsmax, Trump acknowledged that rising instability has pushed crude prices higher amid concerns about potential supply disruptions in the region.
“As soon as this ends, those prices are going to drop, I believe, lower than even before,” Trump said.
Global oil benchmarks have climbed in recent days as fighting involving Iran and Israel intensified, fueling investor concerns about the security of key shipping lanes and energy infrastructure. The price swings have contributed to broader market volatility, with traders closely watching developments overseas.
Trump expressed confidence that the United States and its allies are managing the situation and said the spike in oil prices is tied directly to uncertainty surrounding the conflict.
“It’s about stability,” Trump told reporters. “Once we have stability, you’re going to see a big difference.”
Chancellor Merz echoed concerns about economic ripple effects from prolonged instability in the region, particularly for European economies that remain sensitive to energy costs. Both leaders emphasized the importance of maintaining open trade routes and preventing further escalation.
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