Oil prices tumble over 5% as Israel and Iran halt mutual attacks

International benchmark Brent crude fell more than 5% to approximately $90 per barrel on Tuesday, its lowest level since March, after Israeli Prime Minister Benjamin Netanyahu and Iranian officials signaled a temporary halt to mutual strikes, according to market data. US benchmark West Texas Intermediate declined over 5% to around $86.40 per barrel as the war premium in crude prices eased rapidly across global exchanges.

Diplomatic Signals

Netanyahu stated that Israel would pause strikes while warning that it would respond forcefully to any further attacks from Tehran, a stance echoed by Iranian media reports signaling a similar pause in hostilities. US President Donald Trump said this week that negotiations were entering their final stage and that Washington could declare "total victory" in the conflict within two weeks, adding that a clearer outcome could emerge within days.

Supply Outlook

US Energy Secretary Chris Wright noted that ship traffic through the strategic Strait of Hormuz is rising "very meaningfully" following the de-escalation. Weaker demand from China — where crude imports dropped to approximately 7.8 million barrels per day last month, the lowest level in more than eight years — has also weighed on prices alongside record US exports.

The combination of declining consumption from the world's largest crude importer and emergency reserve releases has helped limit the price impact of the conflict, according to energy analysts. Market participants continue to monitor whether the ceasefire holds, as any renewed escalation involving key regional producers could quickly revive supply concerns despite the current drop in futures prices.