Oil prices dip to $103.77 as Trump pauses Iran strike for talks

Business, International

INTERNATIONAL (NPA) — Crude benchmarks fell after U.S. President Donald Trump announced he had temporarily halted a planned military strike on Iran to allow negotiations aimed at ending the Middle East war.

Trump, in a social media post late Monday, said the United States was “ready to resume attacks if a deal is not reached,” but emphasised that diplomacy was being given a chance.

By midday trading, Brent futures for July delivery slipped $1.13 (1%) to $110.97 per barrel, while U.S. West Texas Intermediate (WTI) June contracts edged down 28 cents (0.3%) to $108.38.

The more active July WTI contract dropped 61 cents (0.6%) to $103.77. Analysts noted that prices had touched their highest levels in weeks during the previous session before Trump’s comments triggered a reversal.

“Markets are swinging from one headline to the next, but without any real breakthrough toward ending the conflict,” said Ole Hansen of Saxo Bank, adding that Trump’s remarks were the immediate catalyst for Tuesday’s decline.

The ongoing war has effectively shut down the Strait of Hormuz, a vital corridor that normally carries about 20% of global oil and liquefied natural gas shipments. The International Energy Agency (IEA) described the closure as the largest single disruption to world energy supplies in decades.

Iranian state media reported that Tehran’s latest peace proposal to Washington includes a halt to hostilities across all fronts, U.S. troop withdrawals from areas near Iran, and reparations for war damage.

Domestically, the U.S. Energy Department disclosed that a record 9.9 million barrels were drawn from the Strategic Petroleum Reserve last week, reducing stockpiles to 374 million barrels, the lowest since July 2024. Industry forecasts suggest U.S. crude inventories fell by another 3.4 million barrels in the week ending May 15, with official data from the Energy Information Administration expected Wednesday.