Oil Retreats as Trump Holds Off Iran Strike

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.

WTI crude oil futures climbed back toward $107 per barrel on Monday as uncertainty deepened over US Iran negotiations aimed at reopening the key Strait of Hormuz. Market sentiment shifted after doubts resurfaced about an imminent agreement to restore energy flows through the vital shipping route. According to Axios, Iran submitted an updated peace proposal to end the conflict, but the White House reportedly considers it insufficient for a deal. Iran’s Tasnim news agency said Tehran still views US conditions as overly demanding despite revisions in the latest draft, signalling that the deadlock over both the conflict and the Strait of Hormuz remains unresolved. Earlier optimism had been supported by reports that Washington proposed a temporary waiver on oil sanctions, though this has not been confirmed by US officials. Meanwhile, the International Energy Agency warned on Monday that global oil inventories are declining rapidly.