Oil prices saw an initial two percent increase on Tuesday. Then the prices dropped slightly from that peak.

Oil prices spiked on Tuesday after US President Donald Trump warned Tehran residents to evacuate, generating fresh fears regarding the already escalated Israel-Iran conflict.

Oil prices saw an initial two percent increase on Tuesday. Then the prices dropped slightly from that peak. Investors are anxious about the market because there are warnings that if the current crisis gets worse, it could trigger rise in oil prices again.

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The sudden jump in the prices occurred following Trump’s message in the social media, calling for the evacuation of the Iranian capital, which is home to nearly 10 million people.

Pointing to the talks that were conducting to make a nuclear deal with the Islamic Republic, US President said, “Iran should have signed the ‘deal’ I told them to sign.”

“What a shame, and waste of human life. Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!,” he added.

Traders were feeling more optimistic after Trump, who is currently attending the G7 summit in Canada, stated that Iran was willing to negotiate a deal, claiming “as soon as I leave here, we’re going to be doing something”.

Trump made an early exit from the summit, telling reporters, “I have to be back as soon as I can. I wish I could stay for tomorrow, but they understand, this is big stuff.”

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According to the Wall Street Journal, Tehran had expressed a desire to de-escalate and resume nuclear talks with Washington since the US did not join the conflict.

Asian stocks markets mostly jumped, with Tokyo, Sydney, Seoul, Singapore, and Taipei advancing significantly. However, Shanghai and Hong Kong  experienced difficulties.

(With input from agencies)