Crude Oil Falls to Lowest Since 2021

WTI crude held firm above $104 per barrel on Wednesday after coming under pressure in the previous session, as investors assessed President Donald Trump’s renewed threat to resume military strikes on Iran if it failed to accept US peace terms. The comments came less than a day after Trump said he had called off a planned attack following appeals from Gulf allies, while warning that Washington could act within “two or three days.” The developments added to persistent uncertainty surrounding the Middle East conflict, with Iran’s nuclear program remaining a key obstacle in negotiations. The war has now entered its 12th week and has effectively kept the strategic Strait of Hormuz closed to shipping traffic, supporting oil prices and fueling inflation concerns. Meanwhile, reports indicated that NATO is weighing plans to escort commercial vessels through the waterway if the route remains blocked beyond early July, adding another layer of uncertainty to the market.

WTI crude futures slipped toward $103 per barrel on Tuesday, giving back some recent gains after President Donald Trump said he called off a planned military strike on Iran following appeals from Persian Gulf allies, fueling optimism that negotiations could restart. Trump stated that Saudi Arabia, Qatar, and the UAE asked him to “hold off,” adding that serious talks were now in progress, although Tehran has yet to confirm the claim. Oil prices had been rallying for over a week as US-Iran peace talks stalled and shipping through the vital Strait of Hormuz remained effectively closed. Tehran’s nuclear program and the dual blockade of the key waterway continue to be major obstacles preventing a breakthrough in negotiations. Meanwhile, the US issued a fresh waiver permitting the sale of Russian crude oil and petroleum products already loaded onto tankers.

US crude futures pared most of the early gains to trade around $106 a barrel during a volatile session on Monday, as traders weighed fresh developments in the Middle East and mixed signs that the US and Iran could be nearing a deal. President Trump said he was calling off a planned attack on Iran scheduled for Tuesday after leaders from Saudi Arabia, Qatar, and the UAE urged him to “hold off,” adding that serious negotiations were now underway. Earlier in the session, oil prices fell after Iranian media reported that the US had proposed a temporary waiver of oil sanctions pending a final agreement. Prices later reversed course and moved higher again after Axios reported that Iran had submitted an updated peace proposal aimed at ending the conflict, though the White House reportedly viewed the offer as insufficient. Markets remain highly volatile, with oil prices elevated as the Strait of Hormuz stays largely shut and attacks on key infrastructure disrupt production.