Investors Seek Answers as Oil Prices Decline After Iran-Israel Truce
SINGAPORE — Oil prices fell on Tuesday, erasing most of the previous session’s gains, after Iran and Israel said they had halted attacks on each other following an appeal from US President Donald Trump, though both sides warned they could resume hostilities.
Brent crude futures dropped $1.14, or 1.2 percent, to $93.11 per barrel, while US West Texas Intermediate declined $1.30, or 1.4 percent, to $90 a barrel.
Prices had climbed as much as 5 percent in the prior session after renewed Israeli strikes on Iran and attacks in Lebanon reduced hopes of an end to the wider war. But gains were pared after Iran’s armed forces announced the end of military operations against Israel.
“While there is some relief from the latest pause in direct strikes, investors are not convinced the truce will hold,” said Tim Waterer, chief market analyst at KCM Trade.
Iran and Israel halted attacks after Trump appealed for an immediate stop to “shooting,” though Tehran said it would resume strikes if Israel continued to hit Hezbollah in Lebanon. Israeli Prime Minister Benjamin Netanyahu responded that Israel would respond with force if Iran attacked again.
Trump told Axios he warned Netanyahu that he might find himself fighting alone if he returned to war with Iran.
“The key question is whether current de-escalation efforts can finally translate into a longer-lasting resolution, or if we’re simply in another temporary lull,” Waterer added.
Meanwhile, US forces disabled an unladen oil tanker in the Gulf of Oman on Monday after it attempted to sail to an Iranian port in violation of the ongoing US blockade against Iran.
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