Oil prices declined after US President Donald Trump said he had called off a planned military strike on Iran, raising hopes that renewed negotiations could ease tensions in the Middle East and eventually restore disrupted crude flows.
Brent crude fell below $110 a barrel after gaining 2.6% in the previous session, while West Texas Intermediate for July traded below $103. The pullback came after Trump said leaders from Saudi Arabia, Qatar and the United Arab Emirates urged him to suspend an attack that had been scheduled for Tuesday.
In a social media post, Trump said the Gulf leaders requested that Washington “hold off” because “serious negotiations are now taking place.”
Oil has rallied sharply in recent weeks as traders grappled with the possibility that the near-total closure of the Strait of Hormuz could continue to choke off Persian Gulf energy supplies.
The strategic waterway remains the central concern for markets, as any prolonged disruption threatens a significant portion of global crude and fuel shipments. Trump later told reporters at the White House that the US remained prepared to strike if talks failed to produce an acceptable agreement.
ALSO READ: US Denies Agreeing To Lift Iran Oil Sanctions Amid Peace Deal Talks
“I put it off for a little while, hopefully maybe forever,” he said, adding that discussions with Iran had been substantial, though their outcome remained uncertain.
Tehran did not immediately confirm that negotiations had resumed.
The US naval blockade has effectively shut down Iran’s Kharg Island export terminal for at least 10 days, depriving Tehran of vital oil revenues and removing millions of barrels from global supply.
That marks a dramatic reversal for Iran, which had initially benefited from elevated prices after restricting other countries’ shipping through Hormuz during the early stages of the conflict.
Crude prices briefly erased some gains on Monday after Iran’s semi-official Tasnim news agency reported that Washington was considering a temporary sanctions waiver to allow limited oil exports until a final agreement was reached. A US official later dismissed the report as inaccurate.
Separately, the US issued a fresh waiver allowing the sale of Russian crude oil and petroleum products that were already loaded onto tankers, just days after an earlier exemption expired. The move could provide some short-term relief to global supply chains, though the dominant driver of prices remains the uncertain trajectory of US-Iran negotiations.
ALSO READ: Crude Relief: US Extends Sanctions Waiver On Russian Oil Amid Hormuz Deadlock
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