The international benchmark Brent crude oil fell 4.6% to $88.43, while U.S. West Texas Intermediate crude dropped 6.19% to $85.27 per barrel.

Trump said in a phone interview with CBS News that ships are still passing through the strait, adding that he is “thinking about taking it over.” At the same time, he appeared optimistic that the war could end soon.

Earlier, West Texas Intermediate (WTI) futures had closed up 4.26% at $94.77 per barrel. Overnight, WTI had surged to as high as $119.48, as Gulf Arab states reduced production due to the disruption of navigation through the Strait of Hormuz following threats from Iran.

Brent rose 6.76% to close at $98.96 per barrel after earlier touching $119.50. It was the first time since 2022—following Russian invasion of Ukraine—that oil prices exceeded $100 per barrel.

Energy ministers from the Group of Seven are expected to hold a videoconference on Tuesday to examine the possibility of a coordinated release of strategic oil reserves. According to reports, any decision will be made after the meeting.

On Monday, G7 finance ministers had already held a teleconference regarding the war with Iran. In a joint statement, they stressed that they are ready to take “all necessary measures,” including the use of strategic reserves, to support global energy supply. The group includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

The Largest Disruption in Oil Supply

The closure of the Strait of Hormuz has caused the largest disruption to global oil supply in history, according to analysis by the consulting firm Rapidan Energy Group. About 20% of global oil consumption passes through this maritime passage.

According to Yaniv Shah, the price of Brent could reach as high as $135 per barrel if the current situation lasts four months. If conditions persist for two months, prices could move above $110.

Shortly after oil prices surged above $100 at the market opening on Sunday night, Donald Trump wrote on Truth Social that rising oil prices are “a very small short-term price” to pay for eliminating Iran’s nuclear threat.

“Only fools would believe otherwise,” he added.

Gulf States Cut Production

Gulf states have begun cutting production as storage facilities fill up, with large quantities of crude remaining unsold due to the disruption of exports through the Strait of Hormuz.

Many oil tankers are avoiding the narrow passage out of fear of potential attacks from Iran.

A spokesperson for Ministry of Foreign Affairs of Iran, Esmail Baghaei, warned Monday that tankers must be “extremely cautious.”

“As long as the situation remains unstable, all tankers and shipping in general must be very careful,” he said in an interview.

The fifth-largest producer in Organization of the Petroleum Exporting Countries, Kuwait, announced preventive cuts in production and refinery operations on Saturday due to “Iranian threats to the security of navigation in the Strait of Hormuz.”

State-owned Kuwait Petroleum Corporation did not specify the scale of the cuts.

In Iraq, the second-largest OPEC producer, output has collapsed. Production from the country’s three main southern oil fields has fallen by 70% to 1.3 million barrels per day, down from 4.3 million before the war.

At the same time, the United Arab Emirates, the third-largest OPEC producer, said it is managing production from offshore fields “carefully” to address storage problems. Abu Dhabi National Oil Company clarified that onshore facilities are operating normally.

Meanwhile, the war shows no signs of de-escalation, despite Donald Trump’s claim that it has “already been won.” Mojtaba Khamenei, son of Ali Khamenei, who was killed in the early stages of the war by the United States and Israel, has been appointed as Iran’s new supreme leader.

U.S. Energy Secretary Chris Wright said shipping through the Strait of Hormuz will gradually return once the United States neutralizes Iran’s ability to threaten oil tankers.

“We are not far from the moment when we will see a more normal flow of ships through the Strait of Hormuz,” he told CNN. “We are not yet close to normal traffic levels. It will take some time, but even in the worst-case scenario we are talking about a few weeks, not months.”