Oil prices fell 2% following Trump's remarks on Iran, according to Reuters
On Tuesday, global oil prices fell by about 2% following statements by U.S. President Donald Trump that he had postponed a planned strike on Iran to give negotiations a chance to end the war in the Middle East.
This was reported by Reuters.
Brent crude futures for July delivery fell by $2.26 (–2%) to $109.84 per barrel, while WTI for June delivery lost $1.22 (–1.1%) to $107.44 per barrel.
In the previous session, both benchmark grades reached their highest levels since May 5 and April 30, respectively. The June WTI contract expired on Tuesday, while the most actively traded July contract fell by $1.63 (–1.6%) to $102.75 per barrel.
On Monday, Trump stated that he was suspending the strike on Iran and saw a “very high probability” of reaching an agreement to prevent Tehran from obtaining nuclear weapons.
“Although Trump’s signal has somewhat eased immediate pressure, fundamental risks remain... The market is watching to see whether Trump’s comments mark a genuine shift toward de-escalation or merely a tactical pause. In addition, how Iran reacts to recent events and what is actually happening at sea with tanker traffic through the Strait of Hormuz are key factors determining where oil prices will go from here,” said Tim Waterer, chief market analyst at KCM Trade.
It is also noted that the conflict in the Middle East has effectively paralyzed the Strait of Hormuz—a key maritime route through which about one-fifth of global oil and LNG supplies pass—which heightens the risks of supply disruptions.
Iranian Foreign Ministry spokesman Esmail Baghai confirmed that Tehran’s position had been conveyed to the U.S. via Pakistan, but did not provide any details.
“One might think that the oil market is becoming increasingly indifferent to these headlines. However, the scale of supply disruptions is significant and is becoming more alarming by the day, while oil supplies remain halted,” noted ING analysts.
As a reminder, global oil prices continued their rapid rise on the morning of May 18 amid a sharp escalation of the geopolitical situation in the Middle East.
The U.S. has demanded that Iran hand over enriched uranium
Iran is imposing fees for internet traffic transiting through the Strait of Hormuz.
