Oil prices fell sharply in early trading after President Trump announced a 10-day pause on attacks targeting Iran's energy sector. The decision, made at Iran's request, came as Trump said negotiations with Tehran are continuing. Front-month WTI crude oil futures dropped 1.8% to $92.80 per barrel, while Brent crude futures fell 2.0% to $105.85.

The market reaction reflects traders' relief over reduced supply disruption risks in the Middle East. However, mediators contradicted Trump's account, stating that Iran had not formally requested the pause on strikes against its energy facilities. These mediators also noted that Tehran has yet to provide a final response to a proposed 15-point plan aimed at ending the conflict.

The conflicting signals created uncertainty in the market. While the pause announcement initially drove prices lower, questions about the true status of negotiations and Iran's position on the peace proposal may limit further declines. Traders remain cautious as the situation continues to evolve.