Oil futures retreated significantly Tuesday, with both Brent and U.S. crude falling approximately 3%, as tensions between Iran and Israel showed signs of easing.
The price decline came after President Trump’s warning to Israel and the announcement of a ceasefire, though implementation concerns remain.
Oil had gained 10% since mid-June when hostilities escalated, driven by fears of supply disruptions from Iran (which produces 3.3 million barrels daily) and potential closure of the strategic Strait of Hormuz.
Analysts note that while the strait’s closure remains unlikely, such an event could push oil prices above $100 per barrel. The International Energy Agency has 1.2 billion barrels in emergency stockpiles available if needed.