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Oil prices drop more than 5% as U.S. and Iran pause attacks

WTI was last at $84.47, down 5.39%, while the move is expected to be followed by profit-taking, though tanker risk may persist without a longer-term deal.

Reported · Written up by our desk · Energy

Oil prices fell more than 5% in early Asian trading after the United States and Iran halted attacks following two weeks of escalation that pushed Brent above $100, OilPrice reports. At the time of writing, WTI crude was trading at $84.47, down 5.39%, and Brent crude fell to $91.80, a decline of 5.15%.

The retreat followed a U.S. signal that it would temporarily halt its bombing campaign against Iran, according to OilPrice. U.S. Ambassador to the United Nations Mike Waltz said on Face the Nation that the pause was meant to give diplomacy more room, while additional military assets were moving into the region should diplomacy fail.

OilPrice also reports that Iran indicated it would suspend attacks, with a foreign ministry spokesperson describing talks with an Omani delegation as constructive and noting some progress. An Iranian official cited by Reuters on condition of anonymity characterized Iran’s stance as “attack for attack,” suggesting Iran would stop operations as long as the U.S. does.

For oil markets, OilPrice said the pause was enough to trigger aggressive profit-taking after weeks of steady buying. The outlet added that sustained downward pressure would likely depend on a significant ramp up in tanker traffic, and that operational risks for shipping may remain elevated until a longer-term agreement is reached.

Latest closeWTI crude $90.47 ▼1.9%|Brent $98.38 ▼2.3%

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