Oil plunges 10% as Trump says Iran will be hit 'twenty times harder' if it stops oil flows via Hormuz

Core Viewpoint - Oil prices experienced significant volatility due to the ongoing U.S.-Israeli conflict with Iran, with a surge of about 20% followed by a decline of nearly 11% [1][2]. Group 1: Oil Price Movements - Oil prices surged approximately 20% on Monday amid fears of disruptions to energy supplies due to the conflict [1]. - International Brent crude oil prices fell nearly 11% to $88.36 per barrel, while U.S. crude oil dropped over 10% to $85.17 per barrel after initially surpassing $100 [2]. - A subsequent plunge of 10% in oil prices occurred on Tuesday following U.S. President Trump's warning regarding Iran's potential actions in the Strait of Hormuz [2]. Group 2: Market Reactions and Sentiment - Market sentiment showed optimism as President Trump indicated that the conflict with Iran could end soon, leading to a collapse in oil prices [3]. - Bob McNally, president of Rapidan Energy Group, noted that the market is struggling to process the scale of the disruption, as historically, the Strait of Hormuz has remained open [3][4]. - The current situation is viewed as "completely calamitous and unexpected," with traders betting that navigation through the Strait will ultimately be restored [4].