Oil prices fall on Tuesday

Oil prices fell on Tuesday, erasing most of the previous session’s gains, after Iran and Israel said they had halted attacks following an appeal from US President Donald Trump, easing concerns over potential disruptions to global oil supplies.

Brent crude futures dropped 1.2 per cent to $93.11 a barrel, while US West Texas Intermediate crude fell 1.4 per cent to $90.00 a barrel.

The decline followed a surge of as much as 5 per cent on Monday after renewed Israeli strikes on Iran and attacks in Lebanon heightened fears of a wider regional conflict. Prices later pared gains after Iran’s armed forces announced the end of military operations against Israel.

Despite the pause in hostilities, both sides warned they could resume attacks. Iran said it would restart strikes if Israel continued targeting Hezbollah in Lebanon, while Israeli Prime Minister Benjamin Netanyahu said Israel would respond forcefully to any new Iranian attack.

Analysts said the ceasefire reduced immediate supply risks but warned that tensions remain high and a lasting peace agreement remains uncertain. The Strait of Hormuz, through which around one-fifth of global oil supplies pass, remains a key issue in ongoing diplomatic efforts between Washington and Tehran.

Attribution: Reuters