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Trump Expects Oil Prices to Drop Post-Conflict, Dismisses Iran's Latest Proposal

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US President Donald Trump said on Monday that oil prices would "drop like a rock" after the Middle East conflict, and upcoming talks with Chinese President Xi Jinping would cover Taiwan, energy, and Iran.

Trump made the remarks while addressing reporters during a healthcare event at the White House.

Trump expects oil markets to retreat sharply once tensions in the Middle East ease, "... as soon as this [war] is over with Iran..., you're going to see gasoline and oil drop like a rock."

Trump said oil prices had stayed relatively contained despite the conflict in the Middle East, adding many expected oil to surge to $250 or $300.

Trump said buyers were increasingly adjusting their crude sourcing strategies due to the Hormuz disruption, adding that before the war, about 20% of oil came from the Hormuz.

Asian importers were sourcing crude from Alaska as concerns over disruptions through Hormuz pushed companies and countries toward alternative US energy supplies, buying crude from Texas, Louisiana and Alaska.

Trump said Alaska was "actually a relatively short trip" from Asia compared with other locations.

The US President added that they were building additional infrastructure, including docks, as the US had become "a big filling station" for global energy markets.

Meanwhile, Trump dismissed Iran's latest proposal, saying nobody would accept it.

Trump said divisions remained inside Iran's leadership, with some wanting to "fight till the end."

"I would say the ceasefire is on massive life support," Trump said.

He said Iran's military had been severely weakened, adding its navy, air force, anti-aircraft systems and radar capabilities had effectively been destroyed during the campaign.

Trump added Iran's nuclear sites were "so badly obliterated" that Tehran could not recover the buried nuclear material on its own.

"There are only two countries in the entire world that could ever get that stuff out of there," Trump said, adding that China and the US were the only nations capable of removing the buried material.

At the upcoming meeting with Chinese President Xi Jinping, Trump said he plans to discuss Taiwan, energy and Iran.

Trump added that he maintains "a great relationship" with Xi and noted that China receives "40% of their oil" through Hormuz, adding that Xi "would like to see it get done" regarding tensions involving Iran.

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