U.S. oil futures fell by over $2 after U.S. President Donald Trump said an operation to reopen the Strait of Hormuz will be paused for a short period to see whether an agreement can be finalised and signed. U.S West Texas Intermediate was down $2.23, or 2.18%, to $100.04 per barrel as of 2326 GMT. U.S. crude oil inventories fell for the third straight week, while gasoline and distillate stocks also declined, market sources said, citing American Petroleum Institute figures on Tuesday.
Trump said on Tuesday while the operation to reopen the Strait of Hormuz will be paused, the blockade will remain in force. WTI closed down 3.9% on Tuesday after the ceasefire held despite reported exchanges of fire, while Brent fell 4% to close at $109.87.
Crude stocks fell by 8.1 million barrels in the week ended May 1, the sources said on condition of anonymity. Gasoline inventories fell by 6.1 million barrels, while distillate inventories fell by 4.6 million barrels compared to a week earlier, the sources said.
The war has killed thousands as it has spread beyond Iran to Lebanon and the Gulf, and roiled the global economy. The head of the International Monetary Fund said on Tuesday that even if the conflict ended immediately, it would take three to four months to deal with the consequences.
Rubio said 10 civilian sailors were among those who had died in the ongoing conflict, adding that crew on vessels stranded in the waterway were "starving" and "isolated."
Trump told reporters in the Oval Office that Iran's military had been reduced to firing "peashooters" and Tehran wanted peace, despite public sabre-rattling.
The conflict is also pressuring Trump's administration ahead of crucial midterm elections in November, as rising gas prices hit voters' pockets.
Trump has said the U.S.-Israeli attacks aimed to eliminate what he called imminent threats from Iran, citing its nuclear and ballistic missile programmes and its support for Hamas and Hezbollah.
Diplomatic efforts to end the conflict have yet to yield results. U.S. and Iranian officials have held one round of face-to-face peace talks, but attempts to set up further meetings have failed.
Iranian Foreign Minister Abbas Araqchi said peace talks were still progressing with Pakistan's mediation.
He was travelling to Beijing on Tuesday for talks with his Chinese counterpart, his ministry said. Trump is also due to visit China this month.
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Trump said on Tuesday while the operation to reopen the Strait of Hormuz will be paused, the blockade will remain in force. WTI closed down 3.9% on Tuesday after the ceasefire held despite reported exchanges of fire, while Brent fell 4% to close at $109.87.
Crude stocks fell by 8.1 million barrels in the week ended May 1, the sources said on condition of anonymity. Gasoline inventories fell by 6.1 million barrels, while distillate inventories fell by 4.6 million barrels compared to a week earlier, the sources said.
The war has killed thousands as it has spread beyond Iran to Lebanon and the Gulf, and roiled the global economy. The head of the International Monetary Fund said on Tuesday that even if the conflict ended immediately, it would take three to four months to deal with the consequences.
Rubio said 10 civilian sailors were among those who had died in the ongoing conflict, adding that crew on vessels stranded in the waterway were "starving" and "isolated."
Trump told reporters in the Oval Office that Iran's military had been reduced to firing "peashooters" and Tehran wanted peace, despite public sabre-rattling.
The conflict is also pressuring Trump's administration ahead of crucial midterm elections in November, as rising gas prices hit voters' pockets.
Trump has said the U.S.-Israeli attacks aimed to eliminate what he called imminent threats from Iran, citing its nuclear and ballistic missile programmes and its support for Hamas and Hezbollah.
Diplomatic efforts to end the conflict have yet to yield results. U.S. and Iranian officials have held one round of face-to-face peace talks, but attempts to set up further meetings have failed.
Iranian Foreign Minister Abbas Araqchi said peace talks were still progressing with Pakistan's mediation.
He was travelling to Beijing on Tuesday for talks with his Chinese counterpart, his ministry said. Trump is also due to visit China this month.
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