Oil prices fell Tuesday after Trump said a deal with Tehran could be days away, though no agreement to reopen Hormuz has materialized.
Oil prices fell Tuesday as traders weighed President Donald Trump’s claim that an agreement with Tehran could be close against a fresh burst of violence involving Iran and Israel.
U.S. crude futures were down about 2% to $89.40 by 8:05 a.m. ET, while Brent, the international benchmark, lost 1.7% to $92.65 per barrel, according to CNBC. The move lower followed a brief price spike Monday after strikes between Iran and Israel renewed concerns around the Strait of Hormuz.
Trump told reporters late Monday that a deal to end the war with Iran could come in "two or three days" and that the Strait of Hormuz would open "immediately" after an agreement. He has repeatedly said a deal with Tehran to reopen the waterway is close, but no such agreement has materialized.
The fragile ceasefire put in place in April nearly unraveled this week after Iran launched missiles at Israel in retaliation for Israeli strikes in Lebanon. Israel responded with strikes on Iran, and Trump pressed Israeli Prime Minister Benjamin Netanyahu to hold back from further attacks.
For now, the exchange appears to have stopped short of a broader escalation. Iran and Israel said they had ceased fire, easing some immediate pressure on prices after Monday’s jump.
The oil market remains highly exposed to developments around Hormuz. Prices have climbed about 30% since the U.S. and Israel attacked Iran on Feb. 28, according to the CNBC report. Tehran retaliated by attacking tankers in the Strait of Hormuz and mining the sea lane, sharply reducing traffic through the route and creating a major supply disruption.
Trump has also sought to pressure Iran by imposing a naval blockade on its ports and vessels. The next test for markets is whether his public confidence in a near-term deal is followed by an actual agreement — and whether traffic through Hormuz can begin to recover without another round of strikes.
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