Oil prices eased on Tuesday after a volatile trading session, as Iran and Israel paused attacks on each other, reducing immediate concerns over disruptions to energy supplies. The pullback came after both countries said they had stopped attacking each other following an appeal from US President Donald Trump. However, Tehran warned that it would resume strikes if Israel continued targeting Hezbollah in Lebanon.At around 8 am IST, WTI crude was trading at $90.78 a barrel, down 52 cents or 0.57%, while Brent crude fell 48 cents, or 0.51%, to $93.77 a barrel.The decline followed a sharp rise in oil prices a day earlier, when crude had surged more than 5% amid renewed tensions in the Middle East. Brent has gained around 31% since the conflict began more than 100 days ago, while WTI has risen about 37%. Earlier in April, Brent had climbed above $126 a barrel.Oil prices had jumped on Monday after fresh Israeli strikes on Iran and attacks in Lebanon raised doubts about a quick end to the conflict. Israel said it had targeted a petrochemical plant in southwestern Iran that was being used to produce ballistic missiles. In response, Iran’s Islamic Revolutionary Guard Corps said it had struck a similar Israeli facility in Haifa.The latest attacks followed Israeli strikes over the weekend on Hezbollah strongholds in Beirut. Tehran has repeatedly said that any agreement with Washington to end the conflict must include an end to Israel’s military operations in Lebanon.Investors also remained worried about possible disruptions to the Strait of Hormuz, a crucial route for global energy shipments. UBS analyst Giovanni Staunovo said markets were concerned that restrictions in the waterway could continue for longer.Before the latest escalation in the Middle East at the end of February, about one-fifth of the world’s daily oil and liquefied natural gas supplies passed through the Strait of Hormuz.Iranian state media reported comments by Esmail Qaani, commander of Iran’s Revolutionary Guards’ Quds Force, saying a new security belt would extend from the Strait of Hormuz to the Bab El-Mandeb Strait off Yemen, and from the Gulf to the Red Sea.Adding to concerns over shipping and energy flows, Yemen’s Iran-aligned Houthis said on Monday they would ban ships linked to Israel from the Red Sea following Israel’s renewed military attacks on Iran.Meanwhile, OPEC+ agreed on Sunday to raise its oil output targets for the fourth time in four months in response to the supply crisis.However, analysts said the move was unlikely to have much impact, as several OPEC+ members, including Russia, have struggled to meet their production targets. They cited disruptions linked to the closure of the strait and Ukrainian drone attacks that have affected Russia’s production capacity.Separately, Saudi Arabia has cut its official selling prices for crude oil to Asia for July for a second straight month.Meanwhile, the Middle East crisis has now crossed the 100-day mark, with diplomatic efforts yet to produce a breakthrough. The conflict began on February 28, when the US and Israel launched joint strikes on Iran. In response, Iran restricted movement through the Strait of Hormuz, a key shipping route that normally handles around 20% of global oil supplies, triggering concerns over energy flows and pushing oil prices higher.
