Brent crude fell nearly 7% on Iran deal optimism but pared losses after fresh U.S. military strikes raised doubts over negotiations.
Oil prices tumbled below $100 per barrel Monday as markets priced in progress toward an Iran ceasefire deal, including a potential 60-day extension and reopening of the Strait of Hormuz. The drop erased nearly 7% from crude benchmarks, reflecting optimism over diplomatic efforts to ease regional tensions.
The decline reversed partially Tuesday after U.S. military strikes on Iranian targets, described as defensive, pushed Brent crude up 3% while keeping it under $100. Stocks showed mixed reactions, with European shares volatile and U.S. futures pointing higher after a prior session rally.
Investors remain cautiously optimistic about a deal, though complications arose after a U.S. demand for regional states to normalize relations with Israel. Doubts persist over the timeline for finalizing an agreement.