Oil prices fell after President Donald Trump said the US would stop its annual $4 billion in military support to Israel by the end of the year. Brent was down 3.3% at $101.32 a barrel and US West Texas Intermediate fell 2.2% to $94.30.
Oil prices fell on Tuesday after Trump said the US had agreed to stop paying Israel $4 billion a year by the end of 2026. Brent crude futures were down $3.45, or 3.3%, to $101.32 a barrel at 1350 GMT, after trading above $107 earlier in the session. US West Texas Intermediate was down $2.16, or 2.2%, to $94.30.
Prices had earlier risen after an Iranian official said Tehran and Washington remained far from a deal to end their war, and after the US struck Iran's Qeshm Island. Qatar's foreign ministry spokesperson said the US and Iran remained committed to mediation and were reviewing proposals; talks had shown progress, the spokesperson said. ING said strong signals of progress in peace talks would mean further downside for oil prices, while cautioning that escalation risks may not have passed.
Brent fell more than 7% on Monday as talks between Iranian and Qatari officials raised hopes for an end to the war. Separately, a Ukrainian drone attack damaged an oil refinery in Yaroslavl, Russia, Governor Mikhail Evrayev said.
