WTI Falls Below $90 as Israel, Iran Pause Strikes

West Texas Intermediate crude fell below $90 to $89.13 on Tuesday after reports that Israel and Iran paused direct military strikes. Brent crude eased to about $93 a barrel as oil markets retreated from recent spikes. Global equities rose on signs of reduced regional tensions.

The U.S. benchmark declined more than 5% from a recent peak near $95 that followed retaliatory strikes. Brent had earlier spiked to just under $98 and returned to levels last seen on June 5. Traders reduced risk-driven oil bids after reports that Israel and Iran paused direct clashes on June 5, ending a short exchange of fire.

The exchanges marked the first direct confrontation between Israeli and Iranian forces since an April ceasefire. The flare-up interrupted back-channel talks between Washington and Tehran aimed at de-escalation. Tehran blamed Israel for the escalation, characterizing its action as retaliation for Israeli operations in Lebanon. The U.S. president urged a halt to hostilities; hours later Iran announced it was pausing strikes. Israel said it was ending its campaign but warned it could respond more forcefully if attacked again.

Markets reacted quickly. South Korea’s Kospi recovered from heavy losses and rose by more than 600 points, roughly 8%. Japan’s Nikkei 225 climbed about 2%. In Europe, Germany’s DAX and France’s CAC 40 were slightly higher, while the U.K.’s FTSE 100 traded down about 0.36% at the reported time.

Cryptocurrency markets moved unevenly. Bitcoin slipped below $63,000, erasing some of Monday’s gains. Many large-cap altcoins posted gains of 1% to 2%. Privacy-focused tokens Zcash and Monero gained more than 5%, while the token LAB fell about 17.6%.

Some market analysts warned the pause could be fragile and that extended, difficult negotiations between the U.S. and Iran might raise the risk of renewed clashes. The short-lived escalation affected energy and financial markets by shifting near-term geopolitical risk pricing.