International crude oil prices on Tuesday eased after United States President Donald Trump stepped back from a planned military strike on Iran.
During Asian trading hours, the global benchmark Brent Crude was hovering around $110 per barrel, down around 1.9 percent from the previous trading price.
WTI Crude, the American benchmark, was also down 1.4 percent to around $103 per barrel.
Oil prices had surged on Monday after the United Arab Emirates and Saudi Arabia came under drone attacks and Trump could not secure any breakthrough after his meeting with Chinese President Xi Jinping.
However, Trump on Monday announced that he had called off military strikes on Iran at the request of other Gulf nations.
“I have instructed Secretary of War Pete Hegseth, the Chairman of the Joint Chiefs of Staff, General Daniel Caine, and the United States military, that we will NOT be doing the scheduled attack on Iran tomorrow,” Trump said in a social media post.
He said the decision to cancel strikes on Iran was taken after leaders of countries like Qatar, Saudi Arabia, and the United Arab Emirates assured him that Iran was working on a peace deal proposal acceptable to the United States government.
However, Trump again clarified that America would not accept Iran having nuclear weapons in any form.
“...In their (leaders of other Gulf countries) opinion, a deal will be made, which will be very acceptable to the United States of America, as well as all countries in the Middle East and beyond. This deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN!,” Trump said in the social media post.
Meanwhile, the International Energy Agency on Monday said inventories of commercial oil are depleting rapidly and current reserve levels could last only a few weeks.
The Iran war has led to a slump in crude oil supply to the world, raising prices by over 60 percent from pre-war levels.
