Oil prices fell on Tuesday after Iran and Israel said they had halted attacks following an appeal from US President Donald Trump, easing immediate supply fears.
Brent crude futures fell 91 cents, or 1%, to $93.34 a barrel at 0400 GMT, while US West Texas Intermediate dropped $1.13, or 1.2%, to $90.17 a barrel.
Prices had climbed as much as 5% in the previous session after renewed Israeli strikes on Iran and attacks in Lebanon reduced hopes of a quick end to the wider conflict.
Iran’s armed forces later announced the end of military operations against Israel, helping crude erase most of Monday’s gains.
Tim Waterer, chief market analyst at KCM Trade, said investors were relieved by the pause in direct strikes but remained unconvinced the truce would hold.
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Tony Sycamore, market analyst at IG, said the halt had stopped the situation from worsening, but the geopolitical backdrop remained tense.
Tehran warned it could resume strikes if Israel continued to hit Hezbollah in Lebanon. Israeli Prime Minister Benjamin Netanyahu said Israel would respond with force if Iran attacked again.
Trump told Axios that he warned Netanyahu he might find himself fighting alone if he returned to war with Iran.
Washington is pressing Tehran in peace talks to reopen the Strait of Hormuz, a key oil route that carried about a fifth of global supply before the US and Israel launched airstrikes on Iran at the end of February.
The US military said Monday that US forces disabled an unladen oil tanker in the Gulf of Oman after it tried to sail to an Iranian port in violation of the blockade against Iran.
