Global oil prices edged lower on Tuesday, reversing some of the sharp gains recorded in the previous session, as investors shifted focus toward potential negotiations between the United States and Iran that could ease supply disruptions.
According to market data, Brent crude futures declined by $0.68, or 0.71 percent, to $94.79 per barrel. Similarly, West Texas Intermediate crude fell by $0.93, or 1.06 percent, to $86.49 per barrel during early trading hours. The pullback followed a strong rally a day earlier, when both benchmarks surged nearly 6 percent amid escalating geopolitical tensions.
Previously, markets reacted sharply after Iran moved to close the Strait of Hormuz, a vital route responsible for a significant portion of global oil shipments. In addition, a US seizure of an Iranian cargo vessel intensified fears of supply shortages, pushing prices higher.
However, sentiment improved as traders assessed the possibility of renewed diplomatic engagement. Talks expected later this week have raised hopes for an extension of the ongoing ceasefire or even a broader agreement, which could potentially restore oil flows and stabilize markets.
Despite this, uncertainty continues to loom. Iranian parliament speaker Mohammad Bagher Ghalibaf reiterated a firm stance, warning that Tehran would not negotiate under pressure and had prepared further responses if tensions escalate.
Meanwhile, the ongoing US blockade of Iranian ports remains a key obstacle to progress, especially as the fragile two-week truce nears its deadline. Shipping activity through the Strait of Hormuz also remains subdued, underscoring the continued volatility in global energy markets.
Analysts caution that while diplomatic optimism has tempered prices for now, geopolitical risks could quickly trigger renewed market fluctuations.
