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EMEA Oil Update: Crude Falls After Trump Called Off Iran Strike

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EMEA crude futures dropped in after-hours trading on Tuesday after President Trump said he would postpone a planned military strike on Iran following requests from Middle Eastern leaders, a decision that eased fears of an imminent supply disruption.

Brent crude futures slipped by 1.01% to $110.98 per barrel, while Murban oil futures were down 1.79% to $106.35/bbl.

"The oil market continues to trade in wide ranges, and it remains extremely sensitive to Iran-related headlines amid current supply disruptions," ING strategists said in a note Tuesday.

On Tuesday, Trump called off a planned attack on Iran after the heads of three regional powers in the Middle East asked him to "hold off."

The US President told reporters on Tuesday that he was "an hour away" from deciding whether to attack Iran before he was convinced to postpone the strike for a few days.

"What seems to be a pattern is that Trump states something like "very good negotiations going on with Iran", "New leaders in Iran are great", "Great progress in negotiations", "Deal in sight", etc whenever the Brent M1 contract trades above $110/bbl," Bjarne Schieldrop, chief commodities analyst at SEB Research, said, noting that this is an effort to cool the market.

Fueling bearish sentiment, NATO is reportedly considering helping vessels pass through the Strait of Hormuz if the strategic waterway isn't reopened by early July.

Though a fragile ceasefire was reached in April, tensions between Iran and the US continue, with Tehran keeping the Hormuz closed, while Washington continues to blockade Iranian ports.

The US Navy has redirected 88 Iran-linked commercial vessels and disabled four others since imposing the blockade on April 13, the US Central Command said in a social media post on Tuesday.

Iran unveiled a new body, the Persian Gulf Strait Affairs Authority, on Monday to oversee activities related to the Strait of Hormuz. The agency said it would issue guidance to vessels transiting the waterway, including emails outlining passage rules and regulations.

Saxo Bank strategist said traffic via the Strait remains only a fraction of pre-war levels, despite the waterway accounting for about one-fifth of global oil supply.

Meanwhile, the US sanctioned over 50 entities, including oil and gas tankers as well as an Iranian foreign currency exchange, in its continued bid to get Tehran to agree to a deal and reopen the Hormuz.

On the supply front, the US extended a sanctions waiver allowing purchases of Russian seaborne oil for another 30 days on Monday to support vulnerable countries while the US works on issuing more specific licenses where required.

The measure is intended to help stabilize physical crude markets and ensure oil supplies continue to reach countries facing acute energy security risks, Treasury Secretary Scott Bessent said in a social media post.

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US Oil Update: Futures Settle Higher After Trump Says Planned Iran Attack Put on Hold

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Oil & Energy

Cape of Good Hope Share of US-Asia LPG Voyages Hits Highest Since 2016, Vortexa Says

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Oil & Energy

Middle East Conflict Could Push Asia Towards Coal, Renewables, Wood Mackenzie Says

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