Oil prices fell after Iran reportedly said it would suspend attacks as long as a U.S. pause in hostilities remains in place.
International benchmark Brent crude futures for September delivery fell 4.88% to around $92 a barrel, while U.S. West Texas Intermediate crude futures similarly dropped over 5% to $84.84 a barrel.
Iran has indicated it will stop carrying out attacks as long as the United States also refrains from striking.
U.S. ambassador to the United Nations Mike Waltz said that Trump had chosen to pause the strikes to allow diplomatic efforts to continue.
HSBC's U.S. rates strategist Dhiraj Narula noted that higher oil prices have contributed to renewed expectations that the Federal Reserve may need to keep policy tighter for longer.
