WTI falls to near $93.50 after Israel, Iran signal an end to hostilities

• WTI declines after Israel and Iran separately signaled a temporary halt in hostilities.

• Oil prices previously surged after renewed tensions escalated between the US and Iran.

• The US military said it launched retaliatory strikes on Iranian sites linked to attacks on US forces.

West Texas Intermediate (WTI) oil price loses ground after registering modest gains in the previous day, trading around $93.70 per barrel during the Asian hours on Friday. Crude oil prices fell after separate reports from Israel and Iran indicated that hostilities have, at least for now, come to a halt.

Oil prices had earlier climbed after renewed tensions erupted between the United States (US) and Iran. The US military stated that it carried out retaliatory strikes on Iran on Thursday, targeting sites allegedly responsible for attacks on US forces.

The US military launched strikes on the Iranian port city of Bandar Abbas and Qeshm Island in the Strait of Hormuz. A senior US official told Fox News that the attacks do not signal a resumption of the war and should not be interpreted as the end of any existing ceasefire agreement.

US Central Command confirmed that Iranian forces launched missiles, drones, and small-boat assaults against USS Truxtun, USS Rafael Peralta, and USS Mason while the three guided-missile destroyers were transiting the Strait of Hormuz. CENTCOM described the Iranian operation as unprovoked and stated that US forces responded under the right to self-defense, according to the official statement.

Iran’s military accused the US of breaching the ceasefire between the two countries, claiming that American forces targeted two ships in the Strait of Hormuz and struck civilian areas, according to Reuters.

Meanwhile, the Trump administration is awaiting Iran’s response to a proposal intended to reopen the Strait of Hormuz and bring an end to the nearly 10-week conflict, while tensions continue to remain high across both the Persian Gulf and Lebanon. Reports indicate that Tehran is expected to communicate its response through Pakistan within the next two days.