Oil prices retreated on Sunday after reports suggested Iran may be prepared to halt attacks as long as the United States keeps its own pause in military action in place. The move eased some of the market anxiety that had built up over nearly two weeks of intensifying conflict in the region.
Brent crude futures for September delivery fell 6% to about $90.97 a barrel, while U.S. West Texas Intermediate for September delivery also dropped 6% to $83.83 a barrel. According to Reuters, citing a senior Iranian official, Tehran has signaled it will stop carrying out attacks if Washington refrains from striking as well.
The reported shift comes after the U.S. suspended its bombing campaign. The pause followed concerns raised by President Donald Trump’s advisers that the military was running low on viable targets and that American weapons stockpiles could be strained. A U.S. ambassador to the United Nations, Mike Waltz, said on Fox News Sunday that Trump had chosen to pause the strikes to give diplomacy more time.
Market watchers also noted that the earlier rise in oil prices had renewed expectations that the Federal Reserve might need to keep policy tighter for longer. Still, HSBC U.S. rates strategist Dhiraj Narula said inflation expectations have stayed relatively contained, helped by stronger messaging from Fed officials about their commitment to price stability.
Source: cnbc.com
