Oil Prices Fall Sharply, WTI Trades Near $102 a Barrel

Oil declined after Iran and the US signaled there's an opening toward a resolution in the conflict that's upended global energy shipments. West Texas Intermediate futures fell as much as 3% to trade near $101 a barrel. The move came after Iranian state media reportedBloomberg Terminal that Pesident Masoud Pezeshkian said the country is ready to end the war while reiterating the country's demands. Prices earlier rose by more than 3%. Iran had previously outlined the conditions it says are necessary to stop fighting, including ending the war across all fronts and recognition of its sovereignty over the Strait of Hormuz. Earlier on Tuesday, US President Donald Trump told the New York Post the US is "not going to be there too much longer," calling the campaign against Iran "an obliteration." The war, now in its fifth week, has effectively closed Hormuz, choking off supplies of crude, natural gas and products such as diesel to global markets, which has led to skyrocketing energy prices and concerns about inflation. US gasoline topped $4 a gallon for the first time since August 2022, posing a major political risk for Trump's White House in a midterm-election year. An Iranian missile strike on a base in Saudi Arabia damaged several military jets and destroyed a valuable E-3 Sentry early warning and control aircraft -- the first known combat loss for that type. The roughly $300 million plane was hit in an attack on Prince Sultan Air Base in recent days, according to a person familiar with the matter asking not to be identified discussing sensitive military operations. Unverified photos of the jet showed its tail completely severed, rendering it unflyable. The so-called AWACS plane, which has a rotating radar disc mounted above its fuselage, is used to spot distant threats and direct other combat aircraft. It provides a powerful advantage, and although the US operates more than 30 and can replace the loss, the destruction of one is costly. "It's a big deal," said Peter Layton, a former Royal Australian Air Force officer and a visiting fellow at the Griffith Asia Institute. "It highlights that large aircraft are vulnerable on the ground and need active defense. That is hard to do all the time, sometimes it fails." US Central Command didn't immediately respond to a request for comment on the loss of the aircraft, which was earlier reported by Air & Space Forces Magazine. Three other Boeing Co. Sentry aircraft have been lost in accidents since it was introduced in the late 1970s. Like the KC-135 Stratotanker, the plane is based on the airframe that also produced the 707 passenger jet. The US has not yet lost any crewed planes to enemy fire in the air during the campaign against Iran. More than a dozen MQ-9 Reaper strike drones have been shot down, however, showing that airspace over the country remains dangerous. US bombers, including B-52s and B-1Bs, continue to use long-range strike cruise missiles to strike targets in Iran safely. Attacks over the weekend featured some of the largest attacks since the war's start, with the UAE and Bahrain both reporting strikes of 20 ballistic missiles each on Saturday alongside Shahed-type weapons. Iran has launched more than 1,400 ballistic missiles at targets around the region, along at least 4,000 Shahed rudimentary cruise missiles. An earlier strike damaged several KC-135s on the ground at an airbase.