Oil prices fell in early Asian trading on Tuesday as concerns over supply disruptions eased amid hopes of renewed dialogue between the United States and Iran to reduce tensions.
Brent crude futures dropped by $1.86, or 1.87%, to $97.50 per barrel, while U.S. West Texas Intermediate crude fell by $2.25, or 2.27%, to $96.83 per barrel as of 00:03 GMT.
Both benchmarks had risen in the previous session following the U.S. military’s announcement of a blockade on Iranian ports, extending to the Strait of Hormuz and surrounding areas, according to officials.
Meanwhile, Iran warned it could target ports in Gulf countries after talks in Islamabad aimed at containing the crisis failed.
The International Monetary Fund, the World Bank, and the International Energy Agency urged countries to avoid restricting or stockpiling supplies, warning of what they described as an unprecedented shock to global energy markets.
The head of the International Energy Agency, Fatih Birol, said there is currently no need to release strategic reserves, but noted that the agency stands ready to act if necessary.
In a related development, the Organization of the Petroleum Exporting Countries lowered its global demand forecast for the second quarter by 500,000 barrels per day, according to its monthly report.
Reuters
