Brent Declines as US Winds Down Iran Offensive

Brent crude futures dropped below $108 per barrel on Wednesday, declining for the second straight session after US Secretary of State Marco Rubio announced that “Operation Epic Fury is concluded,” noting that its objectives had been met. President Donald Trump also said the US would temporarily pause its effort to assist stranded vessels in exiting the Strait of Hormuz, allowing time to assess whether a potential agreement with Iran to end the conflict could be reached. However, the US blockade on ships traveling to and from Iranian ports will remain in place. Washington is now turning its attention to reopening the strait, facing mounting pressure from other nations and growing domestic opposition to the war. These developments unfold against a backdrop of continued deadlock between the US and Iran, with little headway toward renewed negotiations, as Tehran maintains that any talks hinge on the removal of the US naval blockade.

Brent crude futures slipped below $112 per barrel on Tuesday, reversing gains from the previous session, after US Defense Secretary Pete Hegseth said the ceasefire with Iran remains in place despite this week’s attacks on the UAE. He added that the Strait of Hormuz is open, noting that two US commercial vessels transited safely with US military support, which repelled attacks from Iranian drones, missiles, and armed small boats. The developments come amid a stalemate between the US and Iran, with little progress toward renewed talks, as Tehran insists any negotiations require Washington to lift its naval blockade on Iranian ports.

Brent crude futures slipped below $112 per barrel on Tuesday, after a 4.4% gain in the previous session, as investors weighed the risk of a broader conflict against the possibility that the escalation is part of ongoing negotiations. The US and Iran exchanged fire in the Strait of Hormuz, casting doubt on the durability of a four-week ceasefire. US forces said they repelled Iranian attacks while escorting two American-flagged vessels through the key shipping route, adding they had defended commercial ships from drones and small boats. The UAE also reported intercepting Iranian missiles and confirmed a fire at its Fujairah oil terminal. The developments follow President Donald Trump’s plan to restore transit through the strait and assist stranded vessels, though shipowners remain cautious amid security risks. The renewed flare-up suggests the route may stay restricted without a US-Iran agreement, keeping markets alert to further price volatility.