U.S.-Iran fighting pause holds
Oil prices declined as a temporary pause in hostilities between the U.S. and Iran eased concerns over energy supply disruptions in the Strait of Hormuz. While tensions remain, diplomatic discussions between Iran, Saudi Arabia, and Oman have contributed to a cooling of market fears.
Why it matters
Geopolitical stability in the Middle East directly impacts global energy prices and economic inflation.
Oil prices fell Tuesday as Iran held discussions about the Strait of Hormuz with Saudi Arabia and Oman.
Brent crude futures , the international benchmark, fell by 3.9% to $84.91 a barrel. U.S. West Texas Intermediate dropped by 3.3% to $79.87 a barrel.
Iran's top diplomat Seyyed Abbas Araqchi hosted separate calls with his Saudi and Omani counterparts, according to a foreign ministry statement posted on Telegram.
They discussed the need to "eliminate the insecurity imposed on the Strait of Hormuz caused by the aggressive actions of the United States," according to the statement.
The pause in fighting between the U.S. and Iran appeared to hold Tuesday, raising hopes for a de-escalation in the Middle East conflict that has upended energy supplies. Tehran has rejected reports that it has agreed to a 10-day ceasefire with the U.S. but there has been a temporary pause in hostilities .
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