Oil Prices Plummet as Iran-Israel Truce Raises More Questions Than Answers

Oil prices took a hit on Tuesday as investors remained cautious about the prospects of lasting peace in the Middle East. After Iran and Israel announced an end to their attacks on each other following an appeal from U.S. President Donald Trump, oil prices initially surged but quickly pared gains.

Brent crude futures fell by 91 cents, or 1%, to $93.34 a barrel, while U.S. West Texas Intermediate declined $1.13, or 1.2%, to $90.17 a barrel.

Tim Waterer, chief market analyst at KCM Trade, noted that 'while there is some relief from the latest pause in direct strikes, investors are not convinced the truce will hold.'

The tensions between Iran and Israel remain high, with both sides warning of potential resumption of hostilities. Tehran has said it would resume attacks if Israel continued to hit Hezbollah in Lebanon.