RoydadNaft –  Brent crude oil futures fell by $1.14 (equivalent to 1.2%) from the previous price to reach $93.11 per barrel. U.S. West Texas Intermediate (WTI) crude oil futures dropped by $1.30 (equivalent to 1.4%) from the previous price to reach $90.00 per barrel.

According to Roydad Naft, oil prices declined on Tuesday. This followed announcements by Iran and Israel that they had halted attacks on each other at the request of U.S. President Donald Trump—although both sides warned that hostilities could resume. 

Brent crude oil futures fell $1.14, or 1.2%, to $93.11 per barrel (at 06:30 GMT), while U.S. West Texas Intermediate crude fell $1.30, or 1.4%, to $90.00 per barrel.

Prices had surged as much as 5% the previous day as renewed Israeli strikes on Iran and attacks in Lebanon dampened hopes for an imminent end to a wider war. However, they eased after Iran’s armed forces announced the end of military operations against Israel.

Senior market analyst at KCM Trade, Tim Waterer, said: “While there is some relief from the latest pause in direct attacks, investors are not convinced this ceasefire will hold.”

Iran and Israel announced they had stopped attacking each other following Trump’s call for an “immediate cessation of firing,” although Tehran said it would resume attacks if Israel continued its strikes on Hezbollah in Lebanon.

Market analyst at IG, Tony Sycamore, said: “While this helped prevent the situation from spiraling out of control, the geopolitical backdrop remains highly tense and a lasting peace agreement still seems out of reach.”

In a video statement broadcast on Israeli television, Israeli Prime Minister Benjamin Netanyahu said Israel would respond forcefully if Iran attacked again.

In an interview with Axios published on Monday, Trump said he had warned Netanyahu that if Israel entered another war with Iran, it might have to fight alone.

Waterer said: “The key question is whether the current efforts to de-escalate can eventually lead to a long-term solution, or whether we are simply in another period of temporary calm.”

One of the key issues Washington is pursuing in peace talks with Tehran is the reopening of the Strait of Hormuz, through which about one-fifth of the world’s oil supply passed before the U.S. and Israeli airstrikes on Iran at the end of February.

On Monday, U.S. forces intercepted an empty oil tanker in the Gulf of Oman after the vessel attempted to reach an Iranian port in violation of the ongoing blockade against Iran.