Both sides halt strikes after Trump appeal, but traders aren’t buying the calm
Oil prices dropped Tuesday as markets digested a fragile pause in Iran-Israel hostilities, giving back most of Monday’s sharp rally in a matter of hours.
What Happened
Brent crude fell $1.14 (1.2%) to $93.11 a barrel, while WTI dropped $1.30 (1.4%) to $90.00, as of 0630 GMT. That follows a 5% surge in the previous session, triggered by fresh Israeli strikes on Iran and renewed attacks in Lebanon.
The pullback came after Iran’s armed forces announced they had stopped military operations against Israel, following a direct appeal from President Trump to both sides to immediately stop “shooting.”
Iran added a condition: it would resume strikes if Israel continued hitting Hezbollah in Lebanon. Israeli Prime Minister Benjamin Netanyahu made clear Israel would respond with force if attacked again. Trump, meanwhile, told Axios he warned Netanyahu he could find himself “fighting alone” if he returned to war with Iran.
Why Traders Are Still Nervous
“Investors are not convinced the truce will hold,” said Tim Waterer of KCM Trade. Tony Sycamore of IG echoed that: the geopolitical backdrop stays tense, and a lasting deal remains out of reach.
A central sticking point in U.S.-Iran talks is the Strait of Hormuz, the waterway that carried roughly one-fifth of global oil supply before airstrikes began in late February. On Monday, U.S. forces disabled a tanker in the Gulf of Oman after it attempted to breach the ongoing blockade against Iran.
What to Watch
Whether this pause translates into something real or just another short break before the next escalation.
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