(RTTNews) – Oil prices were sharply lower on Tuesday as a halt in hostilities between Israel and Iran boosted hopes that peace negotiations could move forward.
Brent crude futures fell more than 2 percent to $92.33 a barrel, after having hit as high as $98 a barrel in the overnight U.S. trading session. WTI crude futures were down 2.5 percent at $89.04.
Geopolitical tensions eased somewhat as Israel and Iran agreed to halt attacks against each other following a series of mutual attacks from Sunday night, which marked the most serious escalation since the ceasefire in April.
U.S. President Donald Trump said that he had warned Israeli Prime Minister Benjamin Netanyahu that if Israel resumed its war with Iran, it could find itself fighting alone.
Trump also said that the final negotiations on a peace deal aimed at achieving a complete solution to the West Asia conflict are currently underway but “ignorance of stupidity” could derail efforts to reach a final agreement.
Iran said it is prepared for a long-term war with Israel and that it would resume strikes if Israel continued operations in Lebanon.
Iranian Foreign Ministry spokesperson Esmail Baghaei held the U.S. responsible for recent ceasefire breaches.
Israel categorically rejected Iran’s threats and said any Iranian attempt to link Lebanon and Iran, and attack Israel will be met with great force.
The Strait of Hormuz remains effectively closed to tanker traffic under a dual blockade by the U.S and Iran.
Analysts say that the markets will take months to normalize once it reopens under new rules.
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