Oil prices moved lower after Israel and Iran agreed to halt attacks against each other, following a new wave of violence that threatened to derail efforts to end the war in the Middle East.

Brent fell toward $93 a barrel, after closing with marginal gains on Monday, while US crude WTI was trading at around $90. Israeli Prime Minister Benjamin Netanyahu said the country is currently observing the ceasefire with Iran, while warning that it will respond if Tehran launches a new attack. Similar messages were also reported by Iranian media.

The recent flare-up in fighting put broader negotiations to end the war in the Middle East at risk, forcing US President Donald Trump to intervene and call for a de-escalation of tensions.

Although the ceasefire remains in place, the energy market continues to be marked by high uncertainty. The Strait of Hormuz remains effectively closed due to the dual blockade maintained by both Tehran and Washington, sharply limiting exports of crude oil, fuel and natural gas to international markets.

A sign that risks in the region have not disappeared came on Monday in the Gulf of Oman, where an empty oil tanker was stopped by US forces after breaching the blockade while attempting to approach an Iranian port.

At the same time, the Israeli military said it had intercepted a “suspicious aerial target” coming from Yemen, underscoring that security in the region remains fragile.

Late on Monday, Donald Trump said the United States expects to declare “total victory” in the war with Iran within the next two weeks.

Speaking at an online political event for South Carolina Republicans, he said negotiations with Tehran were underway and repeated his view that oil prices would fall significantly once the conflict ends.

However, even if a peace agreement between the United States and Iran is reached, the full restoration of oil flows is not expected to be immediate.

Analysts point out that significant technical and operational challenges remain before the market returns to normal.

These include clearing mines from the Strait of Hormuz, restarting fields that have been shut down and carrying out extensive repairs to energy infrastructure damaged by missile and drone attacks.

Enverus Head of Oil and Gas Research Al Salazar noted that the oil market continues to be heavily influenced by daily developments and political statements.

As he said, prices remain “hostage to the headlines,” adding that for the tightness of global inventories to be fully reflected, oil would need to trade steadily above $100 a barrel.

Source: newmoney.gr