Brent crude fell nearly 3% after Donald Trump said the US will stop providing military funding to Israel after the end of this year. The drop came after oil had climbed earlier in the day on new US strikes on Iran.
Brent crude slid nearly 3% after Trump said Washington will stop providing military funding to Israel after the end of this year.
The US president said he made a deal with Israeli prime minister Benjamin Netanyahu. Speaking to Fox News' Fox and Friends programme, Trump said Israel no longer needs the funding. He also said some Democrats and left-wing politicians use it as a talking point to criticise Republicans.
Trump said the US gives Israel $4bn a year and that the two sides made a deal months ago to stop it.
Oil had rebounded on new US strikes on Iran
Earlier on Tuesday, Brent climbed $2.38 to $107.15 a barrel, a 2.2% gain, after the US reportedly launched limited strikes on Iran's Qeshm Island late on Monday. European stock markets fell in early trading as the global oil benchmark rose.
However, the benchmark had plunged 11% to $103.28 a barrel on Monday after Trump reportedly said he was willing to give diplomacy more time. The strikes also came hours after US vice-president JD Vance said he was optimistic that diplomatic efforts to end the war were moving in the right direction.
Before the war started on 28 February, Brent traded around $72 a barrel. The US-Israeli war on Iran has reduced Saudi Aramco's output, but higher oil prices have offset that.
Source: The Guardian
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