Oil extends losses on lower Middle East supply risk
Oil prices extended losses on Tuesday to hit a two-week low on what the market viewed as lower risk of supply disruptions in the Middle East, though U.S. President Donald Trump accused both Israel and Iran of violating a ceasefire he helped to broker.
Brent crude futures were down $3.52, or 4.92%, at $67.96 a barrel by 1322 GMT. U.S. West Texas Intermediate crude fell $3.42, also 4.99%, to $65.09.
Both contracts lost as much as 5% in early trade after Trump announced a ceasefire agreement between Israel and Iran.
Trump accused both countries of violating the ceasefire hours after he announced it, expressing particular frustration with Israel.
"I didn't like the fact that Israel unloaded right after we made the deal. They didn't have to unload and I didn't like the fact that the retaliation was very strong," Trump told reporters on Tuesday.
Prices also fell as Trump posted on social media platform Truth Social that China can now continue to purchase oil from Iran.
Israeli Defence Minister Israel Katz had said that he had ordered its military to mount new strikes on targets in Tehran in response to what he said were Iranian missiles fired in a "blatant violation" of the ceasefire.
Iran denied launching any missiles.
The 12-day war has triggered high volatility in oil prices, with Brent crude trading in an $11.86 range on Monday, its widest since July 2022.
Both oil contracts settled more than 7% down in the previous session, having rallied to five-month highs after the U.S. attacked Iran's nuclear facilities over the weekend.
Source: Reuters
