Oil dips about 1% after Trump delay news

President Donald Trump’s decision to delay a planned U.S. strike on Iran helped push oil prices lower on Tuesday, as traders pulled some of the geopolitical premium out of crude after days of gains tied to war risk in the Gulf. Reuters reported Brent futures for July delivery fell $2.26, or 2%, to $109.84 a barrel at 0352 GMT, while U.S. (politico.com) West Texas Intermediate crude for June delivery lost $1.22, or 1.1%, to $107.44. Trading Economics also showed Brent down about 1.3% on May 19 and U.S. crude down roughly 1.5%, underscoring a broad retreat across major benchmarks. (money.usnews.com) Trump said on May 18 that he had postponed the strike after requests from Gulf leaders including Qatar’s Emir Tamim bin Hamad Al Thani, Saudi Crown Prince Mohammed bin Salman, and UAE President Mohamed bin Zayed Al Nahyan. (politico.com) In a Truth Social post cited by Politico, Trump said those leaders asked him to “hold off” because “serious negotiations are now taking place.” He also said Defense Secretary Pete Hegseth and Joint Chiefs Chairman Gen. Daniel Caine should remain ready to move “on a moment’s notice” if no acceptable deal is reached. ### Why did oil fall if the region is still unstable? Oil fell because the immediate prospect of a new U.S. strike on Iran was removed, at least temporarily. (money.usnews.com) Reuters said the market reaction came in early Asian trading after Trump paused the planned attack to allow negotiations to continue. Trading Economics said the move “gave back some recent gains” after Trump said he had called off the strike following appeals from Persian Gulf allies. The Strait of Hormuz remains central to the market’s risk calculus. Trading Economics said shipping through the waterway remained effectively closed and that Tehran’s nuclear program and the dual blockade were still major obstacles to a breakthrough. (politico.com) That helps explain why the move in crude was limited to about 1% to 2%, rather than a deeper selloff. ### What did Trump actually say about the Iran strike? Politico reported that Trump announced on Monday that a U.S. strike scheduled for Tuesday would be delayed in hopes of more diplomatic progress. Trump wrote that the Gulf leaders believed “a Deal will be made” that would be acceptable to the United States and countries in the Middle East. (money.usnews.com) He added that the prospective deal would include “no nuclear weapons for Iran.” Trump also did not present the delay as a cancellation. Politico reported that he told military leaders to remain prepared for a “full, large scale assault of Iran” if negotiations fail. That kept some supply-risk premium in the market even as prices eased. (tradingeconomics.com) ### How did the Russia waiver feed into the move? The U.S. Treasury also extended a sanctions waiver covering some Russian oil shipments, adding another supply-related reason for prices to ease. Al-Monitor reported that Treasury Secretary Scott Bessent said on Monday the department was issuing a temporary 30-day general license to let vulnerable nations temporarily access Russian oil already stranded at sea. (politico.com) Trading Economics separately said the United States had issued a fresh waiver permitting the sale of Russian crude oil and petroleum products already loaded onto tankers. That waiver matters because it signaled that Washington was willing to prevent an additional supply squeeze while the Iran war continued. (politico.com) The combination of a delayed strike and a temporary Russian oil waiver gave traders two reasons on May 19 to reduce near-term supply fears. ### How big was the drop across benchmarks? Reuters put the early move at 2% for Brent and 1.1% for front-month WTI. Trading Economics later showed Brent at $110.62 per barrel, down 1.32% on the day, and U.S. crude at $102.77 per barrel, down 1.55%, while Investing.com’s WTI page showed crude at $103.29, down 1.04%, with an intraday range of $102.16 to $104.00. (al-monitor.com) The different readings reflect contract timing, data snapshots and exchange conventions, but they all pointed to an intraday decline of about 1% or more. ### What comes next for traders? Trump was scheduled to meet his national security team on Tuesday to discuss Iran further, Politico reported. (al-monitor.com) Al-Monitor said the Russian oil waiver runs for 30 days, while Trading Economics said tanker access and the status of the Strait of Hormuz remain the main supply variables. Those next steps — White House decisions, waiver duration and Gulf shipping conditions — are the concrete markers traders will be watching after May 19’s pullback. (politico.com) (money.usnews.com)