Global oil prices fell sharply on Thursday after comments by US President Donald Trump eased market concerns over escalating instability in Iran, a key oil-producing nation.

Benchmark West Texas Intermediate (WTI) crude dropped 3.0 percent to $60.16 per barrel, while Brent crude declined 2.93 percent to $64.57 per barrel. The losses came after Trump said he had been informed that the killing of protesters in Iran had stopped, calming fears of potential geopolitical fallout.

Speaking unexpectedly at the White House, Trump said he would “watch it and see” regarding any possible military action. He added that executions reportedly planned for the day would not take place, suggesting a de-escalation of the crisis. “They’ve said the killing has stopped and the executions won’t take place, and we’re going to find out,” he told reporters.

In recent days, Trump had repeatedly spoken about supporting the Iranian people amid a harsh crackdown on protests. Human rights groups claim that at least 3,428 people have been killed during the unrest, raising alarms in global markets.

On Wednesday, oil prices had risen around 1.5 percent amid fears that worsening instability could threaten crude supplies. However, analysts say Trump’s latest remarks reduced the risk premium in oil markets.

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“Oil prices dropped after comments from President Trump eased fears of a looming supply shock,” said Kyle Rodda of Capital.com. Meanwhile, MUFG analyst Michael Wan noted that Iran accounts for about 3 percent of global oil production, making developments in the country closely watched.

Despite the price drop, Wan cautioned that geopolitical risks remain, noting that the US has redeployed some personnel in Qatar and other regional bases due to ongoing tensions.