Brent crude oil fell $10.45, or 10.6%, to $88.51 per barrel, while U.S. West Texas Intermediate (WTI) dropped $10.61, or 11.2%, to $84.16 per barrel, after surging above $119 on Monday, the highest since mid 2022, due to fears that the Iran conflict could disrupt supply.

Markets calmed after U.S. President Donald Trump and Russian President Vladimir Putin spoke on the phone, discussed ways to quickly end the conflict, according to a Kremlin aide.

“Trump’s remarks about a short war have calmed markets,” said Suvro Sarkar, energy expert at DBS Bank. “Yesterday’s price spike was an overreaction, and today’s drop may also be too much.”

Also Read: How did one statement from Trump trigger a 6% crash in oil prices?

Experts warned that even if the war ends soon, restoring oil production to normal levels could take weeks. Iran’s Revolutionary Guard said it would stop oil exports if attacks by the U.S. or Israel continue. Plans to ease Russian oil sanctions and release emergency reserves could help stabilize global supply.

Other risks include shipping problems in the Strait of Hormuz and a fire at Abu Dhabi’s Ruwais refinery. Goldman Sachs said it still expects Brent crude at $66 and WTI at $62 per barrel in the fourth quarter, given ongoing uncertainty.