New York, United States – Web Desk: Global crude oil prices declined in early Asian trading on Tuesday as expectations of renewed diplomatic engagement between the United States and Iran eased concerns over potential supply disruptions.
Brent crude futures fell by $1.86, or 1.87%, to $97.50 per barrel, while West Texas Intermediate (WTI) dropped $2.25, or 2.27%, to $96.83 per barrel.
The decline follows a sharp rally in the previous session, when Brent rose more than 4% and WTI gained nearly 3%, driven by geopolitical tensions and reports of restrictive measures targeting Iranian maritime activity.
Market sentiment shifted after signs emerged of possible US-Iran talks, which investors believe could reduce risks to key oil shipping routes, including the Strait of Hormuz.
The Strait remains one of the world’s most critical energy corridors, and any disruption typically triggers volatility in global oil markets.
Analysts say traders are closely monitoring developments in the Gulf region, where diplomatic uncertainty and security risks continue to influence price movements.
Despite the recent pullback, markets remain sensitive to geopolitical headlines, with volatility expected to persist as negotiations and regional tensions evolve.
