Oil plummets to its lows of the day after President Trump says Iran 'appears to be standing down' in the Middle East

• Oil prices fell Wednesday following a statement from President Trump that "Iran appears to be standing down" in the Middle East, and that the US will impose new sanctions instead of retaliating with military force.
• Brent crude fell 4.4% to $65.22 a barrel and US West Texas Intermediate crude fell 5.2% to $59.45 per barrel.
• The fall erased all earlier gains from a spike in oil prices early Wednesday following an Iranian missile attack on US forces in Iraq.
• Watch Brent crude and West Texas Intermediate crude trade live on Markets Insider.

Oil prices continued to fall Wednesday after President Donald Trump said that Iran is standing down in the Middle East and that the US will impose new sanctions on the nation instead of retaliating with military force.

Brent crude fell 3.69% to $65.75 a barrel, down from a four-month high of $71.75 per barrel earlier in the day. US West Texas Intermediate crude fell 4.48% to $59.89 per barrel, trading below $60 per barrel for the first time since December 16.

The commodity sank following Trump's statement that "Iran appears to be standing down, which is a good thing for all parties concerned."

Trump added that the US will impose tougher economic sanctions on Iran instead of retaliating with further military force.

Oil prices spiked early Wednesday following an Iranian missile attack on military bases housing US and Iraqi personnel. The attack was likely retaliation for the US killing last week of Iranian Maj. Gen. Qassem Soleimani.

The commodity quickly fell from elevated levels early Wednesday when Trump tweeted that "all is well" and the US announced the attack had not caused any casualties. Oil prices continued to fall later in the day when Trump's statement signaled that the US will not use military force to further retaliate against Iran.

Investor worry that further tension in the area could disrupt regional crude supplies were also abated by a response from the Organization of the Petroleum Exporting Countries.

"We are not forecasting a shortage of supply unless we have a catastrophic escalation, which we don't see," the United Arab Emirates' energy minister, Suhail al-Mazrouei, told Reuters from Abu Dhabi early Wednesday.

In addition, Iran's foreign minister Mohammad Javad Zarif on Wednesday morning tweeted that "we do not seek escalation or war, but will defend ourselves against any aggression."

Get the latest Oil WTI price here.