Oil Prices Rebound as Trump Halts US-Iran Strikes, But Risks Lurk

Crude oil prices have retreated on Hyperliquid as the US and Iran paused their recent attacks. The West Texas Intermediate (WTI) dropped to $86.82 from last week's high of $93, while Brent, the global benchmark, fell to $98.

The pause in US-Iran strikes removes the immediate supply-shock premium, allowing WTI to reprice towards 'diplomacy possible'. Analysts suspect that Trump is under pressure to negotiate with the Iranians, possibly due to Chinese influence. China has friendly relations with Iran and supplies targeting information, but also reduced its oil purchases, helping Trump keep prices in check.

Despite the pause, there are substantial risks ahead, including the possibility of Ansar Allah escalating attacks against Saudi Arabia and closing the Bab al-Mandeb Strait, affecting over 8 million barrels of oil. Iranian officials believe they have an upper hand, as evidenced by a recent memorandum of understanding.