Oil prices declined on Tuesday, giving up gains from the previous session amid expectations of renewed peace talks between the United States and Iran this week, which could allow additional supply from the Middle East to reach the market.
Brent crude futures fell by 95 cents, or 1%, to $94.53 as of 00:03 GMT. U.S. West Texas Intermediate (WTI) crude for May delivery dropped $1.54, or 1.72%, to $88.07. The May contract expires on Tuesday, while the more actively traded June contract declined by $1.09, or 1.3%, to $86.37.
Both benchmarks had risen on Monday, with Brent gaining 5.6% and WTI climbing 6.9%, after Iran once again closed the Strait of Hormuz, a key artery for global oil transport, and after the United States seized an Iranian cargo vessel as part of its blockade on Iranian ports.
However, investors are now focused on the possibility that talks this week could extend the current ceasefire or lead to a final agreement, despite the continued risk of renewed conflict and disruptions to oil shipments.
A senior Iranian official said on Monday that his country is considering participating in peace talks in Pakistan, following efforts by Islamabad to help end the U.S. blockade.
The blockade remains a major obstacle to Tehran’s return to peace negotiations, as the current two-week ceasefire is nearing its expiration.
— Reuters
