Oil Prices Drop as Trump Vows to End Israel Military Aid by Late 2026

Key Facts

Brent crude futures dropped 2.53% to trade at $102.12 per barrel, according to NDTV Profit. The decline followed an announcement by President Donald Trump vowing to end the United States' $4 billion annual military aid to Israel by the end of 2026. Trump stated that Israeli Prime Minister Benjamin Netanyahu had agreed to the cessation of aid by that deadline, suggesting the country is financially capable of managing without American assistance.

The price movement reflects market expectations of diplomatic progress in negotiations between the U.S. and Iran, which could ease supply disruptions in the Middle East. Traders are specifically monitoring potential agreements to ensure the stability of shipping through the Strait of Hormuz, a critical global oil transit route. This shift in U.S. regional policy is seen as a factor in reducing the geopolitical risk premium that has recently supported crude prices.