Brent crude drops $1.55 to $92.70 after both nations pause attacks, erasing Monday’s 5% gain amid supply concerns.
Oil prices fell sharply on Tuesday, reversing most of the previous session’s rally after Iran and Israel halted attacks following a U.S. appeal. Brent crude declined $1.55, or 1.6%, to $92.70 a barrel, while U.S. WTI dropped $1.93, or 2.1%, to $89.37.
The pullback followed a 5% surge on Monday driven by renewed hostilities over the weekend. Analysts noted that similar de-escalation hopes had previously failed to sustain price gains, with the three-month conflict disrupting Middle East supply routes.
Despite the pause, risks remain elevated. Tehran continues to block shipping through the Strait of Hormuz, a critical chokepoint for global crude flows, while Washington maintains its own Iranian port blockade. China’s 29% drop in crude imports to eight-year lows also weighed on sentiment.