Iran War: Oil prices fall after Trump warns Tehran over Strait of Hormuz

While the price of oil has fallen from Mondays peak it is still around 20% higher than where they were before the US and Israel launched airstrikes on Iran just over a week ago, said Park Kee Hyun from the S Rajaratnam School of International Studies.

Prices will remain volatile as the firms will charge a premium for shipments to account for any risk of the situation worsening, Park said.

Trumps comments may suggest the war may end soon, but the bigger question is whether those remarks are followed by concrete changes in the conflict zone, he added.

G7 nations on Monday said it is ready to take necessary measures to address the global supply of energy in the light of surging oil prices.

A meeting between G7 leaders and the International Energy Agency (IEA) ended without a final decision on whether the nations would release oil from stockpiles, though the matter was discussed.

UK Chancellor Rachel Reeves said on Monday the UK used the meeting to urge for immediate de-escalation in the Middle East and guaranteed security for vessels in the region.

She said: I stand ready to support a co-ordinated release of collective IEA oil reserves.