Oil prices fell Tuesday after Israel and Iran agreed to halt strikes against each other, even as the Israeli military issued new warnings against the Iran-backed militia Hezbollah in southern Lebanon.

The pledge by the countries to stop attacks eased fears of a broader regional conflict. The countries had engaged in tit-for-tat strikes, starting over the weekend, threatening to unravel an already fragile, two-month ceasefire.

Oil slides.

— The price of Brent crude, the global benchmark for oil, fell by more than 2% to about $92 a barrel.

— West Texas Intermediate crude, the U.S. benchmark, was down around 3% to around $88 a barrel.

— Investors and analysts are focused on the continued disruption to shipping in the Strait of Hormuz, the narrow waterway between Iran and Oman that is a vital trading route for oil and natural gas that normally carries as much as one-fifth of the world’s oil supply.

Stocks rise.

— The S&P 500 rose 0.6% as trading resumed in the United States on Tuesday.

— Stocks in Asia ended the trading day broadly higher. Shares in Japan and Taiwan jumped more than 2%, while stock markets in mainland China posted strong gains.

— In Europe, stocks gained. The Stoxx 600, a broad-index that tracks the region’s largest companies, rose 0.6%.

Gasoline prices hold firm.

— Gas prices held steady Tuesday to a national average of $4.16 a gallon, according to the AAA motor club. Gas prices have risen 40% since the war began.

— Gas prices don’t move in lock step with crude, usually trailing increases or drops by a few days.

— The average price of diesel was also unchanged at $5.32 Tuesday, up 42% since the start of the war.

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This article originally appeared in The New York Times.

By The New York Times/J. Emilio Flores
c. 2026 The New York Times Company