New York, United States – Web Desk: Global oil prices edged lower on Tuesday after a sharp rally in the previous session, as investors assessed developments in ongoing US-Iran negotiations and the future of maritime traffic through the Strait of Hormuz.
Brent crude futures fell 75 cents, or 0.79%, to $94.23 per barrel, while US West Texas Intermediate (WTI) crude declined 85 cents, or 0.92%, to $91.31 per barrel during early trading. The pullback followed gains of more than 5% on Monday amid heightened geopolitical concerns in the Middle East.
US President Donald Trump said talks with Iran remain ongoing despite reports from Iran’s Tasnim news agency suggesting Tehran had suspended indirect negotiations with Washington. Trump later stated that he expected a deal to be reached within the coming week that could extend the ceasefire and facilitate the reopening of the Strait of Hormuz.
Market analysts said traders remain focused on diplomatic developments, threats to regional shipping lanes, and the movement of oil tankers through one of the world’s most critical energy corridors.
The Strait of Hormuz remains central to global energy markets, handling a significant portion of the world’s oil and liquefied natural gas exports. Any disruption to shipping activity has immediate implications for energy prices and supply chains.
Meanwhile, Lebanon announced a partial ceasefire between Hezbollah and Israel, offering a potential sign of de-escalation in a conflict that has contributed to broader regional instability.
US crude exports reached a record 5.6 million barrels per day in May as refiners in Asia and Europe increased purchases amid Middle East supply concerns. Analysts also expect US crude inventories to have declined for a second consecutive week, adding support to oil prices.
Shipping executives and energy market participants continue to watch US-Iran diplomacy closely, with any breakthrough or setback likely to influence crude oil prices in the coming days.
