Crude oil fell more than 2% to below $95 a barrel on Tuesday, hitting a three-week low and extending the previous session’s 7.4% slide. The market surrendered earlier gains after President Donald Trump announced that Washington would end its financial assistance to Israel by year-end, following an agreement with Prime Minister Benjamin Netanyahu to phase out the $4 billion aid programme. Trump said Israel no longer required the funding, while stressing that the US remained prepared to offer other forms of support.
In parallel, US Energy Secretary Chris Wright said that overnight attacks on Iran’s Qeshm Island had not disrupted oil flows, and noted that additional refined products would be supplied from the Persian Gulf and India. At the same time, Iran signaled a more flexible diplomatic stance, with President Masoud Pezeshkian stating that Supreme Leader Mojtaba Khamenei had authorized negotiations on issues previously regarded as off-limits.
