The surprise exit of Bolton prompted speculation that the tensions between the United States and Iran could ease, or at least that the chance of a military conflict had decreased.
Bolton was a strong proponent of the Trump administration's so-called "maximum pressure" campaign against Iran.
US oil tumbled as much as 2.2% to $57.30 a barrel immediately after Trump tweeted out the firing of Bolton. Crude bounced off those lows and was recently trading around $57.75 a barrel, CNN reported.
"This is a knee-jerk reaction given that Bolton has been so adversarial with Iran," said Matt Smith, director of commodity strategy at ClipperData.
"With his removal, there is an expectation there won't be as much vehemence in the tit-for-tat with Iran."
Earlier this year, tensions between the United States and Iran soared to levels that prompted fears of a war. Oil prices jumped as investors feared the potential disruption of shipments in the Strait of Hormuz, the most important place on the planet to the global supply of oil.
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