Oil prices dropped Wednesday after President Trump said Iran appears to be “standing down” from further military action against the United States. Iranian missiles struck U.S. military bases late Tuesday, causing fears of an armed conflict between the two countries.

As of 12:54 PM ET, West Texas Intermediate (WTI) is down 4.74% to $59.72 a barrel, while the price of Brent Crude is down 4.45% to $65.46

"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 widely anticipated televised speech. The attack on the military bases had resulted in zero casualties, according to the White House.

During the speech, Trump touted U.S. energy independence from the Middle Eastern countries.

“We are now the No.1 producer of oil and natural gas anywhere in the world. We are independent and we do not need Middle East oil,” he continued.

The relationship between the U.S. and Iran has been tense over the past week, after Iranian general Qassim Soleimani was killed in a U.S. airstrike at Baghdad International Airport on Thursday. The attack enraged the Iranian leadership, with Tehran promising retaliation. The Trump administration has said that Soleimani was planning an “imminent attack” towards U.S. personnel or assets in the Middle East.

Further escalation could have affected international oil and gas markets. In September, drones hit oil fields in Saudi Arabia, cutting oil production and causing the price of oil to rise. The U.S. — along with the U.K., France and Germany — blamed Iran for the attacks.

The tensions could have resulted in further attacks on Saudi or Gulf-owned oil properties in the region, which could be directed by Iran. Iran has also threatened to close the Strait of Hormuz, which connects the Gulf and the Arabian Sea. Around one-fifth of the world’s oil supply passes through the strategic sea route.

Historically, political developments in Iran have had a major impact on U.S. energy markets. The Iranian revolution of 1979 had caused shortages of gasoline in the U.S., due to strikes at Iranian oil fields and a loss of production.