Oil Dips as Gulf Leaders Step Up Peace Negotiation
Oil prices declined on Tuesday after President Donald Trump announced that he postponed a military strike against Iran after direct appeals from the leaders of Qatar, Saudi Arabia, and the United Arab Emirates.
Brent crude traded at $110.60 per barrel, down around 1.3% from the previous close of $112.10. US benchmark West Texas Intermediate (WTI) decreased about 0.6% to $103.74 per barrel, compared with $104.38 in the previous session.
Prices dropped after Trump said Gulf leaders told him “serious negotiations are now taking place” and expressed confidence that a diplomatic agreement could still be reached.
Trump said that, out of “respect” for the Gulf leaders, he had instructed Secretary of Defense Pete Hegseth, Chairman of the Joint Chiefs of Staff Gen. Daniel Caine, and US military commanders to stand down from the planned operation for now.
Meanwhile, US Treasury Secretary Scott Bessent announced a 30-day extension of the sanctions waiver allowing countries facing energy shortages due to the Iran conflict to purchase Russian oil.
The decision will temporarily allow Russian crude and petroleum products currently held in tankers to hit the market without violating the heavy sanctions imposed by the US on Russian energy firms.
In a post on the US-based social media platform X, Bessent stated, “The US Treasury is issuing a temporary 30-day general license to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea.”
“This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed. This general license will help stabilise the physical crude market and ensure oil reaches the most energy-vulnerable countries,” he added.
“It will also help reroute existing supply to countries most in need by reducing China’s ability to stockpile discounted oil,” he said.
The developments eased concerns over potential supply disruptions in the Middle East and raised expectations of additional crude supplies entering the market.
