WTI declines below $102.00 after Trump says he called off Iran attacks

• WTI price drifts lower to near $101.85 in Tuesday’s early Asian session. 

• Trump said he called off the Iran attacks. 

• Crude oil prices have been volatile after Iran effectively closed the key Strait of Hormuz waterway. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $101.85 during the early Asian trading hours on Tuesday. The WTI price declines after US President Donald Trump said he was holding off a military attack on Iran planned for Tuesday at the request of Gulf states.

Bloomberg reported on Monday that Trump said that he’d called off a strike on Iran planned for Tuesday after an appeal by the leaders of Persian Gulf allies, who called for more time to pursue a diplomatic resolution. The US president added that Washington was prepared to attack if an acceptable deal wasn’t reached, but didn’t set a deadline.

Trump is scheduled to hold a meeting on Tuesday with his top national security advisers to discuss the options for military ‌action regarding Iran.

The crucial Strait of Hormuz shipping lane remains effectively closed due to the ongoing conflict between the US and Iran. A lack of progress towards a peace deal that will reopen the critical waterway could boost the WTI price in the near term. 

Traders await the release of the American Petroleum Institute (API) report, which will be published later on Tuesday. A larger-than-expected crude oil inventory draw indicates stronger demand and could lift the WTI price, while a bigger build than estimated signals weaker demand or excess supply, which might weigh on the WTI price.