London, United Kingdom – Web Desk: Oil prices declined on Tuesday, as investor optimism over a potential diplomatic breakthrough and a possible 10-day ceasefire between the US and Iran outweighed concerns over ongoing military strikes, though analysts warn of persistent supply risks across key global chokepoints .
Price Movements
Brent crude fell 78 cents (0.9%) to $88.44 a barrel**, while US West Texas Intermediate crude declined **73 cents (0.9%) to $82.50 a barrel. The more active September WTI contract dropped 41 cents (0.5%) to $82.07 per barrel .
Ceasefire Optimism
The decline was driven by reports that international mediators are working to secure a 10-day ceasefire, which could pave the way for reactivating the June US-Iran memorandum of understanding and de-escalating regional tensions .
Persistent Supply Threats
Despite the diplomatic optimism, Iran and the US have continued to exchange strikes. Additionally, Yemen’s Houthi group has threatened a naval blockade against Saudi Arabia, keeping investors on edge .
Analysts warn that risks in the Strait of Hormuz and the Red Sea remain significant threats to global energy markets, with the conflict potentially driving oil prices above $100 per barrel if supply disruptions persist .
