Brent Crude Hovers at 5-Week Low

Brent crude oil futures traded around $99 per barrel on Tuesday, near a five-week low, as markets balanced optimism over ongoing US-Iran negotiations against renewed military operations in southern Iran. Reports said the US military targeted missile launch sites and vessels suspected of preparing to deploy mines, with US Central Command stating the actions were intended to protect American forces in the region. At the same time, President Donald Trump said discussions with Tehran were progressing positively but warned that further strikes could follow if talks collapse. The US and Iran are currently negotiating a framework to extend the ceasefire by around two months, during which Washington would ease its blockade while Tehran would reopen the Strait of Hormuz.

Brent crude futures climbed above $98 per barrel on Tuesday, recouping some losses as fresh US military operations in southern Iran and ongoing peace negotiations kept investors on edge. The US military reportedly targeted missile launch sites and vessels suspected of attempting to deploy mines in southern Iran, with US Central Command saying the operations were aimed at protecting American troops in the region. At the same time, President Donald Trump said talks with Tehran were progressing well, though he warned that additional attacks could follow if negotiations broke down. The US and Iran are currently discussing a framework that would extend the ceasefire for roughly two months, during which Washington would lift its blockade while Tehran would reopen the Strait of Hormuz. Despite Tuesday’s rebound, oil prices are still down more than 10% over the past week amid growing optimism surrounding US-Iran negotiations.

Brent crude futures stayed near $97 per barrel on Tuesday after plunging over 6% in the previous session, as rising optimism over a potential US-Iran agreement that would end the conflict and reopen the Strait of Hormuz continued to weigh on prices. President Donald Trump said negotiations were progressing well, although he warned that fresh attacks could follow if talks collapsed, while a Pakistani mediator reportedly told China that an agreement was nearing. The US and Iran are currently discussing a framework that would extend the ceasefire for roughly two months, during which Washington would lift its blockade and Tehran would reopen the Strait of Hormuz. Still, several key issues remain unresolved, particularly Iran’s nuclear program and its demand to retain authority over maritime traffic through the vital waterway. At the same time, continued tensions around Hormuz, including reports of American and Israeli strikes on Iranian vessels, kept investors wary.