Crude retreats after brief surge, with traders watching whether fragile truce in Middle East will hold.
Image: Reuters
Oil prices declined on Tuesday as investors reacted cautiously to reports that Iran and Israel had paused military attacks following diplomatic pressure, including appeals from US President Donald Trump.
Brent crude futures fell by $0.91, or 1%, to $93.34 per barrel, while West Texas Intermediate dropped $1.13, or 1.2%, to $90.17 per barrel, according to market data.
The decline came after prices had surged as much as 5% in the previous session due to renewed strikes in the region, including attacks in Lebanon and Israeli strikes on Iranian targets.
Market analysts said sentiment remains fragile, with investors uncertain whether the ceasefire will hold or if tensions could escalate again.
Iran and Israel both indicated they had temporarily halted strikes, but warned they could resume military action if attacked again or if hostilities continued elsewhere in the region.
Israeli Prime Minister Benjamin Netanyahu said Israel would respond forcefully if Iran resumed attacks, while Iran linked its restraint to conditions involving ongoing regional developments.
Analysts noted that geopolitical uncertainty continues to influence global energy markets, with attention focused on potential disruptions to key supply routes such as the Strait of Hormuz, which plays a critical role in global oil transport.
Despite the temporary easing in direct conflict, traders remain cautious, with many expecting continued volatility as diplomatic efforts and military tensions evolve in parallel.
