An oil tanker and cargo ship remain anchored off the coast of Port Sultan Qaboos in Muscat, Oman, on June 21, 2026.
Elke Scoliers | Getty Images
Oil prices fell after Iran reportedly announced it would halt attacks as long as the U.S. moratorium on hostilities remains in place, allaying fears of an escalation in the nearly two-week-old conflict.
Brent crude oil futures for September delivery, an international benchmark, fell 4.88% to around $92 per barrel. U.S. West Texas Intermediate crude oil futures for September delivery also fell more than 5% to $84.84 per barrel.
Reuters reported on Sunday, citing a senior Iranian official, that Iran has indicated it intends to halt its attacks as long as the United States also refrains from attacks.
The pause follows Washington’s decision to halt its bombing campaign after President Donald Trump’s advisers warned that the military was running out of viable targets and expressed concern that the U.S. weapons stockpile would be depleted.
An Iranian official reportedly said that Tehran’s position “remains ‘attack upon attack.’ If the attacks stop, Iran will also stop its operations. That message has already been conveyed to the United States.”
U.S. Ambassador to the United Nations Mike Walz said on Fox News Sunday that President Trump chose to pause the attacks to allow diplomatic efforts to continue.
Dheeraj Narula, U.S. interest rate strategist at HSBC, said rising oil prices are contributing to renewed expectations that the Federal Reserve will need to continue tightening policy for an extended period of time, but noted that inflation expectations remained relatively subdued despite the energy rally.
He attributed this to a stronger message from Fed officials about their commitment to price stability, which prevented the oil crisis from being reflected in longer-term inflation expectations.
