Oil prices fall on Tuesday

Oil prices fell on Tuesday as signs of potential talks to end the US-Israeli conflict with Iran eased supply concerns tied to disruptions in the Strait of Hormuz.

Brent crude slipped 0.6 per cent to $98.74 a barrel, while US West Texas Intermediate (WTI) dropped 2.3 per cent to $96.78, reversing gains from the previous session when prices surged on escalating tensions.

Despite the decline, supply risks remain elevated. The International Energy Agency (IEA) said attacks on energy infrastructure and restricted flows through the strait led to a loss of 10.1 million barrels per day in March, marking the largest disruption on record.

The US extended its blockade beyond the Strait into the Gulf of Oman and the Arabian Sea, while allies, including the United Kingdom and France, declined to participate and instead called for reopening the route. Iran threatened to target ports in Gulf countries following the collapse of talks in Islamabad.

Markets found some support in expectations that US-Iran negotiations could resume later this week, although analysts warned prices may rebound if talks fail amid tightening global inventories.

The IEA also cut its outlook for 2026, projecting global oil demand to fall by 80,000 barrels per day and supply to decline by 1.5 million barrels per day.

Attribution: Reuters