Oil prices fell about 3% on Thursday following reports that President Donald Trump is reluctant to resume a full-scale war with Iran despite recent clashes.
west texas intermediate Futures fell 3.1% to close at $93.04 per barrel. brent Futures prices, an international benchmark, fell 2.8% to settle at $95.03 per barrel.
President Trump told aides that a weeks-long ceasefire with Iran remains in place despite sporadic clashes, anonymous U.S. officials told The Wall Street Journal. The president said he would consider terminating the cease-fire if Iran killed any U.S. troops, officials said.
The White House declined to comment on the report when asked by CNBC. A White House official said President Trump “always wants a diplomatic solution, but is clear about the consequences if Iran rejects the deal.”
The ceasefire appeared to be on the verge of collapse earlier this week, when Iranian state media reported that Tehran had ended talks with the United States over Israel’s military actions in Lebanon. Iran supports Lebanese Hezbollah militants who have fired missiles at Israel.
Israel and Lebanon agreed on Wednesday to implement a cease-fire, which could help advance negotiations between the United States and Iran. However, it is unclear whether Lebanon’s ceasefire will hold. Hezbollah operates independently of the Beirut government.
“We need to disarm Hezbollah and demilitarize Lebanon,” Israeli Prime Minister Benjamin Netanyahu told CNBC on Wednesday.
President Trump faces growing opposition to the war in the Republican-led Congress. The House of Representatives on Wednesday passed a resolution calling on President Trump to withdraw U.S. troops or seek Congressional authorization to continue the conflict. The resolution still needs to pass the Senate, where President Trump is almost certain to veto it.
