US-Iran war: Oil prices declined on Tuesday as investors awaited the outcome of possible US-Iran talks in Doha, even as both sides exchanged missile strikes over the weekend, putting the interim ceasefire aimed at ending the four-month conflict under strain.
Brent crude futures for August delivery, set to expire on Tuesday, fell 1.03%, or 75 cents, to $72.40 per barrel. The more actively traded September Brent contract was down 0.54%, or 40 cents, at $73.51 per barrel.
Meanwhile, US West Texas Intermediate (WTI) crude slipped 0.66%, or 47 cents, to $70.32 per barrel.
What’s driving crude oil prices today?
Iranian Deputy Foreign Minister Kazem Gharibabadi was quoted as saying by Reuters on Monday that Iranian and Omani experts are expected to begin discussions in the coming days on redefining transit routes through the Strait of Hormuz. He added that Iran would seek to prevent vessels from sailing outside the designated shipping lanes.
At the same time, Iranian Foreign Ministry spokesperson Esmaeil Baghaei clarified that no meetings or negotiations with the United States are scheduled at any level in the coming days.
The conflicting signals over potential talks underscored the fragility of the June 17 ceasefire agreement, which temporarily halted hostilities that had disrupted global oil shipments through the Strait of Hormuz and created a political test for US President Donald Trump ahead of the November congressional elections.
Israel has remained outside the US-Iran peace process and has publicly distanced itself from the agreement.
Despite renewed attacks on ships in the Strait of Hormuz and fresh exchanges of strikes between the US and Iran, Middle Eastern energy producers have continued loading crude oil and LNG cargoes, according to shipping data.
(With inputs from Reuters)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
