Oil Prices Fall as Iran and Israel Halt Attacks After Trump Appeal

Oil prices fell on Tuesday, erasing most of the previous session’s gains, after Iran and Israel announced a halt to attacks following an appeal from US President Donald Trump. Both nations warned hostilities could resume.

Brent crude futures dropped 91 cents, or 1%, to $93.34 a barrel at 0400 GMT. US West Texas Intermediate declined $1.13, or 1.2%, to $90.17 a barrel. Prices had climbed up to 5% in the prior session due to renewed Israeli strikes on Iran and attacks in Lebanon, but pared gains after Iran’s armed forces declared an end to military operations against Israel.

Iran stated it would resume strikes if Israel continued to target Hezbollah in Lebanon. Israeli Prime Minister Benjamin Netanyahu affirmed Israel would respond forcefully to any renewed Iranian attack. Trump had warned Netanyahu he might fight alone if he re-engaged in war with Iran. Analysts remain skeptical about the truce's longevity, citing a tense geopolitical backdrop.

Washington is pressing Tehran in peace talks to reopen the Strait of Hormuz, a critical oil transit route. This follows US and Israeli airstrikes on Iran in late February. On Monday, US forces disabled an unladen oil tanker in the Gulf of Oman attempting to reach an Iranian port, violating the blockade.