FX.co ★ Crude Oil Pares Massive Losses

WTI crude oil futures plunged toward $80 per barrel on Tuesday before trimming losses to close near $87, as traders weighed upbeat diplomatic signals against escalating military action. President Trump said the conflict in the Middle East was “very complete” and ahead of schedule, but prices found a floor after a sharp rebuttal from Iran’s Revolutionary Guard. Iranian officials dismissed the US timeline as false and vowed to continue restricting regional exports until American and Israeli strikes stop. Supply concerns deepened after Defense Secretary Pete Hegseth called Tuesday the most intense day of strikes so far, noting that the Pentagon is concentrating on dismantling Iran’s naval and industrial infrastructure. Although the G7 has signaled readiness to tap emergency reserves and the US Navy stands prepared to escort tankers through the Strait of Hormuz, the risk of a prolonged confrontation remains a substantial headwind for the market.