Oil prices fell sharply on Tuesday after US President Donald Trump warned Iran to not block a shipping route crucial to global energy supplies.
"If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far," he said on Social media.
In morning trade in Asia, Brent crude was 10% lower at $88.92 (£66.19) and Nymex Light Sweet was down 10.2% at $85.08.
Oil had reached almost $120 a barrel on Monday over fears that the US-Israeli war with Iran would cause lengthy disruption to supplies from the Middle East, but fell back after Trump suggested that the war could end soon.
"We took a little excursion because we felt we had to do that to get rid of some evil. Then, I think you'll see it's going to be a short-term excursion," Trump said during a news conference in Florida.
