Oil prices fell on Tuesday after US President Donald Trump said America would stop military funding to Israel by the end of the year. Brent crude, the global benchmark, slid about 3 percent. Traders read the comment as a sign that tensions in the Middle East might cool. Less risk of a wider war means less risk to oil supplies, so prices came down. The move came on a busy day for markets. Saudi oil giant Aramco reported profits, and investors were also watching central bank decisions on interest rates.
Oil prices jump whenever fighting threatens supply, especially near the Strait of Hormuz, a narrow sea route used by a large share of the world's oil tankers. A short war between Israel and Iran in June 2025 pushed prices up sharply. They fell back once the fighting stopped. Lower oil prices reach drivers slowly. Petrol stations cut prices over weeks, and cheaper fuel also lowers the cost of moving goods.
Cheaper oil usually means cheaper petrol and slower inflation. That gives households a little more room in their budgets.

Oil prices fell on Tuesday after US President Donald Trump said America would stop military funding to Israel by the end of the year. Brent crude, the global benchmark, slid about 3 percent. Traders read the comment as a sign that tensions in the Middle East might cool. Less risk of a wider war means less risk to oil supplies, so prices came down. The move came on a busy day for markets. Saudi oil giant Aramco reported profits, and investors were also watching central bank decisions on interest rates.

Oil prices jump whenever fighting threatens supply, especially near the Strait of Hormuz, a narrow sea route used by a large share of the world's oil tankers. A short war between Israel and Iran in June 2025 pushed prices up sharply. They fell back once the fighting stopped. Lower oil prices reach drivers slowly. Petrol stations cut prices over weeks, and cheaper fuel also lowers the cost of moving goods.

Cheaper oil usually means cheaper petrol and slower inflation. That gives households a little more room in their budgets.

📰 Source: News Source
theguardian.com ↗
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