Crude oil prices extended their decline on Tuesday after US President Donald Trump said Washington and Tehran were engaged in talks aimed at ending the conflict in the Middle East.
Brent crude fell below $90 a barrel, while West Texas Intermediate (WTI) crude slipped below $82 a barrel after plunging more than 7% on Monday.
Oil prices had surged earlier this month as tensions between the United States and Iran escalated, fueling concerns over potential disruptions to shipping in the Red Sea.
However, prices have retreated in recent sessions as geopolitical tensions showed signs of easing. Despite the decline, traders remain cautious, with shipping activity through the Strait of Hormuz yet to return to normal levels.
Diplomatic efforts involving Iran and Oman are underway to restore maritime traffic through the Strait of Hormuz, a critical global oil chokepoint that handles nearly one-fifth of the world’s daily oil shipments under normal conditions.
Iran’s military has also suspended retaliatory attacks on U.S. bases and personnel following Trump’s decision to pause further strikes.
Supply concerns eased further after Kazakhstan’s main oil export terminal resumed operations following Ukrainian drone attacks.
Meanwhile, investors are closely watching the U.S. Federal Reserve’s interest rate outlook for clues on future monetary policy. Analysts expect oil prices to remain sensitive to developments in geopolitical tensions and global supply conditions.
