Crude oil prices fell on Tuesday, slipping below $96 per barrel, their lowest level in three weeks. This decline extends the 7.4% drop recorded in the previous session, in a context marked by several political and energy developments in the Middle East.
After an initial uptick, crude prices reversed course following the announcement by U.S. President Donald Trump regarding the end of the United States’ financial support to Israel by the end of the year.
According to reports, this decision followed an agreement reached with Israeli Prime Minister Benjamin Netanyahu to terminate a $4 billion financial aid program. Donald Trump said that Israel no longer needed this assistance, while stating that Washington would remain willing to provide other forms of support.
Meanwhile, U.S. Energy Secretary Chris Wright said that overnight attacks on Iran’s Qeshm Island had not disrupted oil flows. He also indicated that additional volumes of refined petroleum products would be shipped from the Persian Gulf and India.
Diplomatically, Iran has shown greater openness to talks. Iranian President Masoud Pezeshkian said that the Supreme Leader, Mojtaba Khamenei, had authorized the examination of issues previously deemed non-negotiable.
These various announcements come as oil markets remain especially attentive to developments in the Middle East, particularly diplomatic prospects and the risks to energy supply. The continuation of the price decline will depend notably on the evolution of regional tensions and supply conditions in the international market.
