West Texas Intermediate crude futures fell more than 2% in early Asian trading on Tuesday after US President Donald Trump said he had paused a planned attack on Iran to allow room for negotiations aimed at easing tensions in the Middle East.
According to Reuters, the most-active July WTI crude contract dropped $2.08, or 2.02%, to $102.34 per barrel by 2212 GMT.
Meanwhile, the front-month contract declined $1.54, or 1.42%, to $107.12 per barrel after surging more than 3.1% during the previous trading session.
The June contract is scheduled to expire on Tuesday.
Oil markets have remained highly volatile in recent sessions amid escalating geopolitical tensions involving Iran and concerns over potential disruptions to energy supplies in the Gulf region.
Trump’s comments temporarily eased fears of immediate military escalation, prompting traders to pull back from some of the sharp risk-driven gains recorded earlier in the market.
Analysts said investors continue to closely monitor developments in the Middle East, particularly around the Strait of Hormuz, a critical global oil shipping route through which a significant portion of the world’s crude supply passes.
Despite the decline, energy markets remain sensitive to geopolitical developments, with traders warning that any escalation could quickly reignite upward pressure on oil prices.
