Oil and gas prices dropped sharply Trump said the war with Iran is“very complete, pretty much.”

Crude oil had surged close to $120 a barrel on Monday as investors worried the conflict could severely disrupt Middle Eastern energy supplies. However, prices later retreated to below $90 following Trumps remarks.

Despite remaining higher than levels seen before the conflict began, the decline in oil prices helped lift global stock markets, which rebounded after the earlier volatility.

Concerns about supply remain high, particularly because of the situation in the Strait of Hormuz, one of the worlds most critical shipping routes for energy. Roughly 20% of global oil supply normally passes through this narrow channel. Since the fighting intensified more than a week ago, vessel traffic in the area has slowed dramatically.

Amin Nasser, chief executive of Saudi Arabias state oil giant Aramco, warned that a prolonged blockage of the waterway could lead to serious economic consequences. He noted that global oil inventories are already at their lowest levels in around five years, meaning continued disruptions could quickly tighten supply further.

“The longer this situation lasts, the greater the impact it could have on the global economy,” Nasser said.

Price swings continued throughout Tuesdays trading session. Oil briefly dropped to around $82 per barrel after U.S. Energy Secretary Chris Wright posted on social media that an oil tanker had been successfully escorted through the Strait of Hormuz by U.S. forces. However, the message was later removed, and the White House confirmed that the U.S. Navy had not escorted any tankers through the passage. Following the clarification, crude prices rebounded toward $86.

Analysts are also warning that persistently higher energy costs could push inflation higher in several economies. The UK governments fiscal watchdog suggested inflation there could approach 3% by the end of the year if oil prices remain elevated, exceeding earlier forecasts.

Meanwhile, the International Energy Agency held another meeting with G7 countries on Tuesday to explore ways to stabilise the global oil market. One option under discussion is the release of strategic oil reserves to offset potential supply disruptions.