Oil prices declined during Asian trading after U.S. President Donald Trump announced the postponement of a planned military action against Iran, as negotiations between both sides continue, easing concerns over global energy supply disruptions.
The United States’ decision to extend sanctions waivers related to Russian seaborne oil also helped reduce pressure on markets, amid efforts to offset supply disruptions from the Middle East.
Brent crude futures fell to $109.55 per barrel, while West Texas Intermediate (WTI) crude dropped to $102.62 per barrel.
Trump indicated that Washington has decided to give additional time for ongoing negotiations with Tehran, emphasizing continued diplomatic efforts to reach an understanding between the two sides.
Oil prices had surged over the past two weeks due to rising fears of escalating regional tensions, as well as ongoing disruptions in shipments through the Strait of Hormuz, which accounts for around 20% of global oil supply.
In the same context, the U.S. Treasury announced a 30 day extension of waivers allowing purchases of Russian seaborne oil, after previously moving toward ending them.
The decision comes at a time when several Asian countries, including China and India, have been affected by supply disruptions linked to developments in the Middle East, prompting them to increase reliance on Russian oil to compensate for shortages.
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