Global oil prices fell sharply on Thursday after reports suggested that United States President Donald Trump is not eager to resume a full-scale military confrontation with Iran despite recent tensions.
West Texas Intermediate crude dropped by about 3.5 per cent to $92.64 per barrel, while Brent crude, the international benchmark, declined more than 3 per cent to $94.78 per barrel.
According to reports, Trump told his advisers that the ceasefire between the United States and Iran remains largely intact, despite occasional clashes. Sources familiar with the discussions said the president indicated he would only consider ending the truce if American troops were attacked by Iran.
While the White House declined to comment directly on the report, an official stated that Trump continues to favour diplomacy but remains firm on the consequences should Iran refuse to reach an agreement.
The fragile ceasefire came under pressure earlier this week after Iranian state media reported that Tehran had suspended communications with Washington amid Israel’s ongoing military operations in Lebanon. Iran has long supported the Hezbollah movement, which has been involved in cross-border attacks against Israel.
A potential breakthrough emerged on Wednesday when Israel and Lebanon agreed to implement a ceasefire, a development that could improve prospects for renewed talks between Washington and Tehran. However, uncertainty remains over how long the truce in Lebanon will last.
Speaking on Wednesday, Israeli Prime Minister Benjamin Netanyahu insisted that Hezbollah must be disarmed and Lebanon demilitarised as part of any lasting solution.
Meanwhile, Trump is also facing growing political pressure at home. The Republican-controlled House of Representatives approved a resolution calling on the president to either withdraw U.S. forces from the conflict or seek congressional authorisation to continue military operations.
Although the measure still requires Senate approval and would likely face a presidential veto, it reflects increasing concerns among lawmakers over America’s continued involvement in the regional conflict.
The easing of fears over an immediate escalation in hostilities contributed to the decline in oil prices, which had surged in recent months due to instability in the Middle East and concerns about global energy supplies.
