Oil prices dropped sharply Thursday after a report suggested President Donald Trump is reluctant to restart a full-scale war with Iran despite recent tensions in the region.
U.S. crude oil (WTI) fell about 3.8% to $92.34 per barrel, while Brent crude dropped 3.3% to $94.58.
According to The Wall Street Journal, Trump told aides that the ceasefire with Iran is still holding, even though there have been sporadic clashes. The report said Trump would consider ending the truce if Iran were to kill American troops.
The White House declined to comment directly on the report, but an official said Trump "always prefers a diplomatic solution" while remaining clear about the consequences if Iran refuses to make a deal.
The latest development comes after concerns earlier this week that the ceasefire could collapse when Iranian state media reported Tehran had halted talks with the U.S. over Israel's military operations in Lebanon.
There was some positive news Wednesday as Israel and Lebanon agreed to implement a ceasefire, a move that could help advance U.S.-Iran negotiations. However, questions remain about whether the ceasefire will hold.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu said Hezbollah must be disarmed and Lebanon demilitarized to ensure long-term security.
