Oil prices slipped on Tuesday as markets reacted to renewed diplomatic efforts between the United States and Iran, despite mixed signals from Washington.
According to Reuters, Brent crude futures declined by 40 cents, or 0.4%, to settle at $95.08 per barrel, while U.S. West Texas Intermediate crude for May delivery fell 41 cents to $89.20. The May WTI contract expired on Tuesday, with the more active June contract dropping 0.5% to $87.00.
The decline came after a sharp rally the previous day, when both benchmarks jumped following Iran’s reclosure of the Strait of Hormuz and the seizure of an Iranian cargo ship by U.S. Forces. Brent surged 5.6% on Monday, while WTI climbed 6.9%, driven by fears of disrupted supply chains through the vital waterway, which carries about one-fifth of global oil and liquefied natural gas output.
President Donald Trump told CNBC he did not support extending the current ceasefire with Iran, which is set to expire in hours, adding that the United States would achieve what he described as a “great deal.” Meanwhile, an Iranian official said no decision had yet been made on Tehran’s participation in the ongoing peace talks.
The Strait of Hormuz remains a focal point of global energy markets, with any disruption or de-escalation having immediate effects on crude pricing. Traders continue to monitor diplomatic developments closely, as the region’s stability directly influences supply expectations and price volatility.
