Oil prices extended losses on Tuesday amid growing expectations of renewed talks between the United States and Iran that could ease tensions in the Middle East. US crude futures fell 0.88% to $90.40 per barrel, while Brent crude declined 0.31% to $94.47 per barrel.
Market sentiment improved after reports that a second round of US-Iran negotiations is under consideration, although no official schedule has been confirmed. Donald Trump indicated that talks could take place within days.
The renewed push for diplomacy comes ahead of the expiration of a temporary ceasefire, raising hopes of a potential resolution to the conflict.
However, disruptions to oil flows remain a key concern, particularly through the Strait of Hormuz, a critical channel for global energy supplies.
Analysts say that restoring normal shipments through the strait will be essential to stabilise oil markets and reduce pressure on global prices.
Despite the recent decline, oil flows remain constrained, with shipments operating at a fraction of normal levels. The US blockade targeting Iranian ports has added further pressure, with several vessels reportedly turning back.
Experts note that while supply disruptions have been less severe than initially expected, ongoing uncertainty in the region continues to weigh on energy markets.
