Iran halts military campaign against Israel, oil comes off highs

(Sharecast News) - Oil prices came off highs on Monday, after Iran announced the end of military operations against Israel. The two countries breached a fragile ceasefire and exchanged fire in a flurry of attacks over the weekend and into Monday.

Israel launched an attack on the Iran-aligned Hezbollah military group in Beirut, prompting Tehran to fire a barrage of missiles at northern Israel. Israel then retaliated by attacking a petrochemical plant in Iran and other military targets on Monday.

Fears that hostilities were resuming sent global energy prices sharply higher.

However, according to a statement carried by Iranian media, the country's joint military command has now confirmed that its military operation against Israel has come to an end, although it warned that "much more severe and crushing measures" would follow should there be any further "aggression and hostile acts", including in southern Lebanon.

As at 1300 BST, benchmark Brent crude - which had surged 4% earlier in the session - had pared back gains to trade just 1% higher at $94.11 a barrel. West Texas Intermediate also came off earlier highs, up just 1% at $91.26.

The statement from Iran coincided with social media updates from US president Donald Trump calling on Israel and Iran to "immediately stop 'shooting'", and insisting that both sides were "looking to do an immediate CEASEFIRE!

"Final negotiations on 'Peace' are proceeding, subject to ignore or stupidity getting in its way. The Blockade will remain in place, and in full force and effect, until a 'Final Deal' is reached. Things should move quickly."

Trump called Israeli prime minister Benjamin Netanyahu on Sunday urging him not to retaliate. He also told the Financial Times that Netanyahu had no choice but to accept any deal the US agreed with Iran, insisting: "I call the shots. I call all the shots. He doesn't call the shots."