West Texas Intermediate (WTI) crude ended its four-day rally, hovering near $99.60 per barrel during Tuesday’s Asian session. Oil prices softened amid rising expectations that US President Donald Trump could move to de-escalate the Iran conflict, reducing fears of extended supply disruptions.
A report from The Wall Street Journal suggested that Trump has indicated to his advisors a willingness to pause the campaign, even if the Strait of Hormuz remains partially restricted. Market experts see the recent price dip as a short-term response, noting that a sustained decline would likely depend on the full normalization of oil flows through the key shipping route.
At the same time, ongoing US troop deployments signal mixed developments, keeping risks to global energy supply intact. Reports indicate that Iran targeted a Kuwaiti oil tanker near a Dubai port, highlighting increasing threats to maritime activity in the Persian Gulf. Iran-backed Houthi forces have also intensified actions against Israel, while Tehran is believed to be planning disruptions in the Red Sea region.
Meanwhile, Reuters, citing GasBuddy data, reported that the average gasoline price in the US climbed above $4 per gallon on Monday for the first time in more than three years. The continued tensions involving the US, Israel, and Iran are adding pressure to global energy markets.
Rising fuel prices are also emerging as a political concern for Trump and the Republican Party ahead of the November midterm elections, as they aim to retain their narrow majority in Congress. Elevated oil costs are further straining American households already dealing with persistent inflation.
