International crude oil prices fell further on Tuesday as markets reacted to signals from United States President Donald Trump that Washington was not considering additional military strikes against Iran at the moment.
The development eased fears of a further escalation in the Middle East and the potential disruption of crude oil supplies through critical regional shipping routes.
Brent crude futures declined by 70 cents, or 0.75 per cent, to $91.88 per barrel by 0246 GMT, while United States West Texas Intermediate (WTI) crude futures fell 78 cents, or 0.90 per cent, to $86.07 per barrel.
Both benchmarks had earlier recorded declines of approximately one per cent during the trading session, extending losses from Monday when crude prices fell sharply.
Brent crude settled 5.85 per cent lower in the previous session after touching its lowest level since August 31, reflecting changing expectations about the geopolitical risks affecting global oil supplies.
The latest decline followed Trump’s indication that he would hold off on further military strikes against Iran for the time being, following appeals from regional countries, including Qatar.
The US President also indicated that Washington would maintain its naval blockade in the Strait of Hormuz, leaving investors to assess the potential implications for energy shipments through the strategic waterway.
The Strait of Hormuz remains one of the world’s most important energy transportation routes, making developments around the passage particularly significant for international crude oil markets.
Market participants have increasingly focused on Trump’s more conciliatory tone towards Iran, with analysts suggesting that the possibility of reduced military escalation has weakened the geopolitical risk premium previously reflected in crude prices.
Tim Waterer, Chief Market Analyst at KCM Trade, said the market continued to respond to the US President’s softer position towards Iran following the midterm elections.
The decline in oil prices also reflects the sensitivity of global energy markets to expectations about supply disruptions, diplomatic developments and the broader geopolitical environment.
For oil-producing countries, including Nigeria, sustained movements in international crude prices remain important for government revenue, foreign exchange earnings and fiscal planning.
However, the direction of the market will depend largely on developments surrounding US-Iran relations, the security of shipping routes and the outlook for global crude oil supply and demand.
