Oil prices edged lower on Tuesday as cautious optimism over possible U.S.-Iran peace talks softened market tension, even as fresh tanker movements signalled that risks around the Strait of Hormuz remain unresolved.
As at the time of writing 08:00 AM (WAT), Brent crude dropped 0.70% to $94.81 per barrel, while West Texas Intermediate (WTI) crude fell 1.08% to $86.48 per barrel.
The price dip comes as three vessels including a tanker, a container ship and another cargo vessel successfully attempted passage through the Strait of Hormuz.
Reports indicate that only one of the vessels flies the Iranian flag, while another is registered under Ghana, with the tanker’s ownership unclear. All three have reportedly moved into the Gulf of Oman.
Despite the movement, the security situation in the region remains fragile. The U.S. Navy has already carried out two Iranian vessel seizures in recent days, reinforcing the continued enforcement of its maritime blockade, which has kept pressure on oil supply routes.
However, markets are beginning to respond to signs of possible diplomatic progress. Analysts note that the recent pullback in prices reflects growing expectations that ongoing talks could lead to an extension of the ceasefire or a broader agreement between both countries.
Still, not all observers are convinced. Analysts at ING warned that the market may be underestimating the scale of the disruption, arguing that optimism around negotiations is masking the real impact of supply constraints.
With the ceasefire deadline approaching, uncertainty remains high. While some expect a deal to be reached, warnings from Iranian officials suggest tensions are far from resolved, leaving the oil market caught between cautious optimism and underlying supply risk.