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Oil prices fell sharply following U.S. President Donald Trump's decision to delay a potential military strike on Iran, which had previously driven a spike in energy markets. The U.S. also extended a sanctions waiver for Russian oil and gas exports, easing pressure on Moscow. The Trump administration cited the need to avoid escalation in the Persian Gulf amid heightened tensions between the U.S. and Iran. The waiver for Russian energy exports was renewed for another six months, allowing Moscow to maintain access to global markets despite broader sanctions.
The market reaction highlights the sensitivity of oil prices to geopolitical risks and U.S. policy shifts. Traders had initially priced in a Trump-Iran conflict, pushing crude prices to multi-month highs. The reversal in military action and the Russian sanctions reprieve have now triggered profit-taking and volatility. Analysts warn that the situation remains fragile, with any renewed escalation or policy changes likely to reignite price swings.
For Gulf investors, the news underscores the interconnectedness of regional security and energy markets. The prolonged U.S.-Iran standoff and Russia's role in global oil supply will remain critical factors. Traders should monitor further U.S. military movements in the Gulf, OPEC+ production decisions, and the impact of Russian sanctions on global energy flows.
