Oil Prices Drop After Trump Delays Iran Attack and Extends Russian Oil Waiver

Oil prices moved sharply lower in Asian trading on Tuesday after Donald Trump announced that a planned military strike against Iran had been postponed while diplomatic negotiations continue.

Additional downward pressure on crude prices came after the United States extended a sanctions waiver allowing purchases of Russian seaborne oil, helping ease concerns over global supply shortages.

Brent and WTI Crude Record Declines

By early trading, major oil benchmarks had fallen:

• Brent Crude dropped 1.5% to $110.43 per barrel
• West Texas Intermediate (WTI) fell 1.1% to $103.33 per barrel

The declines followed recent gains driven by escalating tensions in the Middle East and fears of major supply disruptions.

Trump Says Iran Negotiations Continue

According to Trump, planned military action against Iran was delayed after requests from Gulf nations and because “serious negotiations” remain underway.

However, the U.S. president warned that a large-scale military response remains possible if diplomatic efforts fail.

Trump also reiterated longstanding U.S. concerns regarding Iran’s nuclear program, stating that Tehran cannot be allowed to obtain nuclear weapons.

Iran Conflict Continues to Influence Global Oil Markets

Oil prices had surged over recent weeks amid reports suggesting potential military escalation involving the United States, Israel and Iran.

At the centre of market concerns is the Strait of Hormuz, one of the world’s most important energy transit routes.

Disruptions in the region have effectively affected around 20% of global crude oil supply, increasing fears of prolonged shortages and higher energy prices worldwide.

Previous negotiations between Washington and Tehran have shown limited progress, with disagreements continuing over uranium enrichment and sanctions relief.

U.S. Extends Waiver Allowing Purchases of Russian Oil

The United States Department of the Treasury announced a 30-day extension to an existing sanctions waiver permitting purchases of Russian seaborne oil.

The decision reverses earlier expectations that the waiver would not be renewed.

The extension aims to support countries facing difficulties securing energy supplies because of disruptions linked to the Iran conflict.

Asian Countries Turn to Russian Oil Amid Supply Pressures

Several Asian economies, including major energy importers such as China and India, have reportedly increased purchases of Russian oil as Middle East supply concerns intensify.

Countries heavily dependent on imported energy have been particularly vulnerable following interruptions to Gulf oil shipments.

According to reports, the sanctions waiver was requested partly to help lower-income nations struggling to access alternative energy supplies.

Oil Market Outlook Remains Highly Uncertain

Although Tuesday’s developments eased immediate fears of supply shortages, uncertainty surrounding Iran, the Strait of Hormuz and global energy security remains elevated.

Analysts expect oil prices to stay volatile as investors monitor diplomatic talks, sanctions policy and potential changes in Middle East tensions.

Future price movements are likely to depend heavily on whether negotiations progress or geopolitical risks escalate further.