New York (CNN Business) Oil prices tumbled Wednesday as President Donald Trump signaled tensions with Iran are easing, reducing fears of a deeper conflict between the two nations.

The decline in crude marks a stunning reversal from an initial spike caused by Iran's missile strike on bases in Iraq that house US troops.

US crude tumbled 4%, hitting session lows after Trump signaled tensions could be easing.

"Iran appears to be standing down, which is a good thing for all parties concerned and a very good thing for the world," Trump said in a highly-anticipated speech.

Crude briefly dipped below $60 a barrel after Trump's remarks, giving back all of the gains from last week's US drone strike that killed a top Iranian commander.

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