Oil falls as Trump tries to convince market an Iran deal is close
Oil prices fell on Tuesday as President Donald Trump tried to convince the market that a deal with Tehran is days away despite attacks between Israel and Iran this week.
US crude oil Futures fell nearly 2% to $89.40 as of 08:05 UTC. Brent International benchmark futures lost 1.7 percent to $92.65 per barrel.
Trump told reporters late Monday that a deal to end the war with Iran could be made in “two or three days” and that the Strait of Hormuz would open “immediately” after the deal. He has repeatedly said that an agreement with Tehran to reactivate Hormuz is imminent, but such an agreement has still not been implemented.
A fragile ceasefire implemented in April nearly unraveled this week after Iran fired missiles at Israel in retaliation for its attacks in Lebanon.
Israel responded with attacks on the Islamic Republic. Trump pressured Israeli Prime Minister Benjamin Netanyahu to refrain from further attacks.
Violence briefly sent oil prices higher on Monday, but the barrage of strikes appears to have ended for now without further escalation. Iran and Israel announced that they had ceased fire.
Oil prices have risen nearly 30 percent since the United States and Israel attacked Iran on February 28. Tehran retaliated by attacking tankers in the Strait of Hormuz and mining the seaway. As a result, traffic in Hormuz decreased, triggering the largest oil supply disruption in history.
Trump attempted to put pressure on Iran by imposing a naval blockade on Iran’s ports and ships.
