Oil prices moved lower on Tuesday, even as a series of attacks between Israel and Iran unfolded this week, after U.S. President Trump signaled to markets that an agreement with Tehran could be reached "within days."
As of 8:05 a.m. Eastern Time, U.S. crude futures were down approximately 2%, trading below $90 per barrel, while the international benchmark Brent crude futures declined by 1.7% to $92.65 per barrel.
Trump told reporters on Monday evening that a deal to end the conflict with Iran could be finalized "in two or three days," and that the Strait of Hormuz would reopen "immediately" upon the agreement's signing. He has repeatedly claimed that a deal with Tehran to reopen the vital waterway is close, though it has yet to materialize.
A fragile ceasefire reached in April was on the verge of collapse this week after Iran launched missiles at Israel in retaliation for an Israeli strike in Lebanon.
Israel subsequently retaliated with airstrikes on Iranian soil. Trump has been pressuring Israeli Prime Minister Benjamin Netanyahu to avoid further escalation.
Monday's clashes initially pushed oil prices higher, but the absence of further escalation after multiple rounds of attacks has led to a pullback, with both Iran and Israel now indicating a temporary pause in hostilities.
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