Oil prices fall below $110 as Trump pauses Iran attack
What's the story
Oil prices fell sharply in early Asian trade on Tuesday, after US President Donald Trump announced a pause in military action against Iran. The decision was taken to allow time for negotiations over the ongoing conflict in West Asia. Brent crude for July delivery fell by 2.7% to $109.09 per barrel while West Texas Intermediate (WTI) for June delivery slipped by 1.3% to $107.28 per barrel.
Market impact
Market reaction to Trump's announcement
The announcement from Trump, who said there was a "very good chance" of reaching an agreement with Iran to prevent it from getting a nuclear weapon, led to a market reaction. The July WTI contract fell by $2.06 or 2% to $102.32 per barrel. However, Tim Waterer, chief market analyst at KCM Trade warned that while Trump's signal has eased some immediate pressure on oil prices, fundamental risks still persist in the market.
Ongoing negotiations
White House considers Iran's proposal inadequate
The West Asia crisis continues to be a delicate balance of diplomatic negotiations and military threats. The White House has reportedly deemed Iran's latest proposal to end the ongoing conflict as inadequate, falling short of significant progress toward a deal. Despite these challenges, officials suggest that talks could continue even as military tensions persist in the region.
Poll results
Poll shows decline in public support for US military aid
A recent poll by The New York Times and Siena University shows a decline in public support for US military aid to Israel and the war on Iran. The survey of 1,507 registered voters found that 64% opposed US involvement in the Iran conflict, while only 30% supported it. It also showed 57% opposed military assistance to Israel, compared with 37% in favor.