<div id="readability-page-1"><div id="parent_top_div">Oil prices fell more than 2 per cent in early Asian trade on Tuesday after US President Donald Trump said he had paused a planned attack on Iran ​to allow for negotiations to end the war in the West Asia. Brent futures for July delivery fell $3.01, or 2.7 per cent, to $109.09 a barrel as of 0001 GMT, ‌while US West Texas Intermediate crude for June delivery fell $1.38, or 1.3 per cent, to $107.28. The two benchmarks had hit their highest levels since May 5 and April 30, respectively, in the previous session. The June WTI contract expires on Tuesday, while the most active July contract fell $2.06, or 2 per cent, to $102.32 per barrel. Trump said on Monday there was a &#34;very good chance&#34; the United States could reach an agreement with Iran to prevent Tehran from obtaining a nuclear weapon, hours after announcing the pause in military action to allow talks. &#34;While Trump's signal has eased some immediate pressure, the fundamental risks persist ... The market is now watching whether Trump's comments represent a genuine shift toward de-escalation or ‌just a tactical pause,&#34; said Tim Waterer, chief market analyst at KCM Trade. &#34;Also, how Iran responds to the latest developments, and what's actually happening on the water with tanker movements through the Strait of Hormuz are key determinants of where oil prices head to from here.&#34; The West Asia conflict has effectively closed the Strait of Hormuz, a critical waterway that carries about a fifth of global oil supply, raising concerns over supply disruptions. Iranian Foreign Ministry spokesperson Esmaeil Baghaei confirmed on Monday that Tehran's ​position had been conveyed to the US via Pakistan but provided no further details. A Pakistani official, speaking on condition ‌of anonymity, said Islamabad had relayed a new proposal between the two sides but noted slow progress. Meanwhile, Iran's semi-official Tasnim news agency reported that Washington had agreed to waive sanctions on ​Tehran's oil ‌exports during negotiations, but a US official denied the claim. Separately, US Treasury Secretary Scott Bessent extended a sanctions ‌waiver by 30 days to allow &#34;energy-vulnerable&#34; countries to continue purchasing Russian seaborne oil. In the US, a record 9.9 million barrels were drawn from the Strategic Petroleum Reserve last week, Energy Department data ‌showed, ​bringing stockpiles down ​to about 374 million barrels, the lowest since July 2024. International Energy Agency head Fatih Birol said commercial oil inventories were falling rapidly, with only a few weeks of supply left ‌due to the conflict ​and disruption to shipping.</div></div>

Oil prices dropped over 2% after President Trump announced a pause in military action against Iran to facilitate negotiations. Brent futures fell 2.7% to $109.09 a barrel, while WTI crude dropped 1.3% to $107.28. Market analysts are cautious, noting that while Trump's comments may ease immediate pressure, fundamental risks remain, particularly regarding Iran's response and shipping movements in the Strait of Hormuz, a vital oil transit route.

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Oil drops over 2% after Trump says he holds off scheduled attack on Iran