Brent crude futures pulled back from recent highs on Tuesday after US President Donald Trump confirmed he had paused a planned military strike on Iran at the request of Gulf allies, easing fears of an immediate escalation in a conflict that has kept global oil prices elevated for months.
Brent crude futures for July delivery fell more than 1 percent to trade at approximately $110.69 per barrel in early US trading, while WTI futures edged lower to $108.21 per barrel. Both contracts closed the session lower, with Brent settling at $111.28 per barrel and WTI at $107.77 per barrel.
Trump confirmed on Monday he had shelved plans for a military strike on Iran following requests from the leaders of Qatar, Saudi Arabia and the United Arab Emirates, who urged Washington to allow room for negotiations. However, the diplomatic outlook remained volatile. Trump told reporters on Tuesday that the US might have to give Iran “another big hit” and set a deadline of two to three days for Tehran to reach a deal.
Both Brent and WTI had settled 2.6 percent and 3.1 percent higher respectively in the previous session, and both contracts have advanced more than 50 percent since the US-Israel war against Iran began on February 28, 2026.
The Strait of Hormuz, through which a significant portion of the world’s seaborne oil flows, remains effectively closed, keeping the supply shock that began with the conflict’s outbreak firmly in place. Some shipping activity through the waterway has resumed, including several crude tankers, but flows remain well below normal levels and could deteriorate quickly. Goldman Sachs has estimated that every additional month the Strait remains closed adds approximately $10 to year-end oil prices.
The US also seized an oil tanker linked to Iran in the Indian Ocean overnight, adding to uncertainty about the durability of any diplomatic progress. The International Energy Agency separately warned that global oil inventories are declining rapidly, reinforcing concerns about the physical tightness of the market independent of day-to-day diplomatic signals.
The US also issued a fresh waiver permitting the sale of Russian crude oil and petroleum products already loaded onto tankers, a move analysts say provides limited near-term supply relief without addressing the core disruption in the Gulf.
For Ghana and other African nations that are both producers and importers of refined petroleum products, elevated Brent prices directly affect downstream fuel costs, government revenue projections and the economic pressures already weighing on households and businesses.
