Key Points
- Oil prices eased by up to around 1 per cent after a more than 3 per cent surge in the previous session
- Brent crude trades near 93–94 dollars per barrel, while WTI holds around 90–91 dollars
- Markets stabilise as immediate escalation fears in the Middle East temporarily cool, though risks persist
ISLAMABAD: Oil prices on Tuesday eased by up to around 1 per cent after a sharp 3 per cent increase in the previous trading session, as markets began to stabilise following a halt in renewed exchange of strikes by Iran and Israel.
Brent crude futures slipped roughly 0.8–1 per cent to hover in the 93–94 dollars per barrel range, while West Texas Intermediate declined about 0.7–0.9 per cent, trading near 90–91 dollars per barrel.
The modest pullback came after oil prices had surged more than 3 per cent a day earlier, driven by renewed Israeli strikes on Lebanon that triggered fears of widening regional conflict and potential disruptions to global energy supply routes.
Market sentiment improved slightly in Tuesday’s session as traders reassessed immediate escalation risks.
The absence of confirmed supply disruptions helped cool speculative buying, leading to a partial technical correction in prices after the previous spike.
Despite the easing, crude markets remain highly sensitive to developments in the Middle East, particularly tensions involving Israel, Lebanon and Iran.
Analysts say the Iran-Israel conflict, being distinct from the Iran-US clash, continues to underpin a persistent geopolitical risk premium in oil prices.
Attention remains fixed on key energy chokepoints, including the Strait of Hormuz, where any escalation could quickly reverse today’s mild decline and send prices sharply higher again.
Overall, the oil market remains in a volatile consolidation phase, with prices swinging between sharp geopolitical-driven rallies and short corrective dips.
Confirming the halt in Iran-Israel strikes, US President Donald Trump has also hinted at the much-awaited Iran-US deal in a few days, raising hopes of further downward correction in global oil prices.
