Brent and WTI contracts retreat over 1.5% after U.S. delays military action, easing supply disruption fears.
Brent crude futures fell 2.11% to $109.70 a barrel in early Asian trading Tuesday after President Trump paused a planned strike on Iran. West Texas Intermediate dropped 1.55% to $102.80, reversing Monday’s gains.
The decline follows a surge in oil prices after drone attacks on Saudi Arabia and the UAE, coupled with stalled U.S.-China talks on reopening the Strait of Hormuz. Markets had priced in heightened geopolitical risks before the pause.
Traders are now assessing whether negotiations will reduce tensions or delay further supply threats.