Oil prices fall after Iran and Israel halt attacks — Reuters
Oil prices fell on global markets on Tuesday, erasing most of the gains from the previous trading session.
The drop in oil prices came after Iran and Israel announced a ceasefire.
Positive developments emerged following an official statement by U.S. President Donald Trump, although both sides in the conflict warned of their readiness to resume hostilities.
Brent crude futures fell by 91 cents, or 1%, to $93.34 per barrel.
Meanwhile, the price of U.S. West Texas Intermediate (WTI) crude fell by $1.13, or 1.2%, to settle at $90.17 per barrel.
During the previous session on Monday, prices rose by 5% due to new Israeli strikes on Iran and attacks in Lebanon, which dampened hopes for a quick end to the war.
The trend shifted after the Iranian armed forces announced the end of military operations against Israel.
Energy sector analysts note that the market remains volatile due to a lack of long-term security guarantees. Any new outbreaks of military aggression in the Middle East could instantly reverse the upward trend in fuel prices.
“While there is some relief following the latest pause in direct strikes, investors are not convinced that the ceasefire will hold,” said Tim Wotterer, chief market analyst at KCM Trade.
Iran and Israel stated that they had ceased attacks on each other following Trump’s appeal to immediately “stop firing.”
Official Tehran has put forward an additional condition and announced that it will resume strikes if Israel continues to attack Hezbollah in Lebanon. Experts emphasize the significance of Washington’s role in resolving this acute international crisis.
“While this has helped stop the escalation of the situation, the geopolitical backdrop remains tense, and a long-term peace agreement has yet to be reached,” noted IG market analyst Tony Sycamore.
Israeli Prime Minister Benjamin Netanyahu, in a video address broadcast on Israeli television, clearly stated that Israel would respond with force if Iran attacks again.
At the same time, U.S. President Donald Trump took a firm stance against allowing the conflict to escalate further.
In an interview with Axios, U.S. President Donald Trump said he warned Netanyahu that he could find himself alone if he resumes strikes against Iran.
This was reported by Reuters.
Oil production will take years to recover after the war
Additionally, Iran announced the opening of the Strait of Hormuz to commercial shipping for the duration of the ceasefire in Lebanon.
Iran estimates the damage from U.S. and Israeli bombings at $270 billion and is demanding compensation from five Arab countries
Iran promises to respond to the blockade of its ports by blocking the Red Sea
