Oil prices fell in Asian trading on Tuesday after US President Donald Trump said he had backed away from launching a strike against Iran on Tuesday.
Bloomberg News reported that the price of Brent crude, the global benchmark for oil, fell below $110 a barrel, after rising 2.6 percent yesterday, while West Texas Intermediate crude, the US benchmark for oil, for July delivery traded below $103 a barrel.
It is worth noting that oil prices are witnessing strong increases amid the deadlock in negotiations between Washington and Tehran, and fears of a prolonged disruption to Gulf supplies if the near-total closure of the Strait of Hormuz continues, which Iran is blatantly practicing in violation of international laws that guarantee freedom of navigation in international waterways.
Trump has repeatedly threatened to resume military action against Iran without carrying out his threats since the ceasefire between the two sides in the first week of April, and Tehran has not immediately confirmed the resumption of talks.
Mark Malek, chief investment officer at Morrill Sebert & Co., an asset management and consulting firm, said the president's cancellation of tomorrow's planned attack was a positive step. The change in plans demonstrates the volatility of the negotiations.
Trump said the United States is preparing to launch an attack if an acceptable agreement is not reached, but he did not specify a deadline for reaching an agreement.
Speaking at a White House event Monday evening, hours after posting about canceling Tuesday's attack, he added: I've put it off for a short time, and I hope it's forever, but maybe for a short time, because we've had some very extensive discussions with Iran, and we'll see what happens.
By 1:06 PM Singapore time, Brent crude futures had fallen 2.1 percent to $109.80 a barrel for July delivery, while West Texas Intermediate (WTI) crude futures for July delivery were down 1.7 percent at $102.68 a barrel. June delivery contracts were also down 1.5 percent at $106.99 a barrel.
