Oil tankers and cargo vessels remain anchored off Port Sultan Qaboos on June 21, 2026 in Muscat, Oman.
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Oil prices fell after Iran reportedly said it would suspend attacks as long as a U.S. pause in hostilities remains in place, easing concerns over nearly two weeks of escalating conflict.
International benchmark Brent crude futures for September delivery fell nearly 5% to around $91.97 a barrel. U.S. West Texas Intermediate crude futures for September delivery similarly dropped 5.2% to $84.67 a barrel.
Iran has indicated it will stop carrying out attacks as long as the United States also refrains from striking, Reuters reported on Sunday, citing a senior Iranian official.
The pause follows Washington’s decision to suspend its bombing campaign after President Donald Trump’s advisers reportedly warned that the military was running out of viable targets and raised concerns about depleting U.S. weapons stockpiles.
The Iranian official reportedly said that that Tehran’s stance “remains ‘attack for attack’: if the attacks stop, Iran will also halt its operations. That message has already been conveyed to the United States.”
U.S. ambassador to the United Nations Mike Waltz said on Fox News Sunday that Trump had chosen to pause the strikes to allow diplomatic efforts to continue.
HSBC’s U.S. rates strategist Dhiraj Narula said higher oil prices have contributed to renewed expectations that the Federal Reserve may need to keep policy tighter for longer, but noted inflation expectations have remained relatively contained despite the energy rally.
He attributed that to stronger messaging from Fed officials on their commitment to price stability, which has prevented the oil shock from feeding into longer-term inflation expectations.
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