Oil prices fall on Tuesday 

Oil prices fell on Tuesday as reports of mediation efforts between the United States and Iran raised hopes for a temporary ceasefire, offsetting concerns over renewed attacks between the two countries and threats by Yemen’s Houthis to impose a naval blockade on Saudi Arabia.

Brent crude futures fell 1.1 per cent to $88.26 a barrel by 0630 GMT, while US West Texas Intermediate crude declined 0.9 per cent to $82.50 a barrel.

Markets weighed reports that mediators had proposed a 10-day ceasefire to revive a June agreement between Washington and Tehran, although analysts said major differences remain between the two sides.

The diplomatic efforts came after another round of US strikes on Iranian targets and Iranian attacks on US military assets across the region. Meanwhile, an unidentified projectile reportedly struck a tanker in the Strait of Hormuz, and vessel traffic through the strategic waterway declined amid heightened security concerns.

Adding to supply risks, Yemen’s Iran-aligned Houthis threatened to impose a naval blockade on Saudi Arabia, raising concerns over potential disruptions to global oil exports and trade.

Markets also awaited US inventory data, with analysts expecting crude and gasoline stockpiles to have declined last week.

Attribution: Reuters