Oil prices fell on Tuesday after US President Donald Trump said that a planned attack on Iran had been paused to allow talks aimed at ending the Middle East conflict.Brent crude for July delivery dropped by $3.01, or 2.7%, to $109.09 per barrel at 0001 GMT. US West Texas Intermediate crude for June delivery also fell by $1.38, or 1.3%, to $107.28 per barrel. In the previous session, both benchmarks had touched their highest levels since May 5 and April 30 respectively.The June WTI contract is set to expire on Tuesday, while the more active July contract slipped $2.06, or 2%, to $102.32 per barrel.Trump said on Monday there was a “very good chance” that the United States and Iran could reach an agreement to stop Tehran from getting a nuclear weapon. His remarks came hours after he announced a pause in military action to allow negotiations.“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,” Tim Waterer, chief market analyst at KCM Trade told Reuters.The conflict in the Middle East has effectively shut the Strait of Hormuz, for over 11 weeks now. The disruption has caused ripples across the world as the key route is responsible for around one-fifth of the global oil supply.As crude oil prices stay above $100 per barrel globally, fuel prices in India have also gone up.Petrol and diesel prices were raised by around 90 paise per litre on Tuesday, marking the second hike in less than a week. After the latest increase, petrol prices in Delhi rose to Rs 98.64 per litre from Rs 97.77, while diesel prices climbed to Rs 91.58 per litre from Rs 90.67.The latest revision comes days after fuel prices were increased by Rs 3 per litre on Friday due to rising crude oil prices amid the Middle East conflict and disruptions around the Strait of Hormuz.The crisis began back on February 28, when US and Israel launched joint strikes on Iran, after which the country squeezed the crucial Strait of Hormuz.
