Oil Holds Decline as Iran Talks Eyed

WTI crude futures held below $90 per barrel on Tuesday after plunging about 10% in the previous session, as President Donald Trump postponed planned strikes on Iran’s energy infrastructure for five days and said productive talks with the country are ongoing. His decision to delay the strike was seen as an effort to stabilize oil prices, with Trump saying they would “drop like a rock” once a deal is reached. However, Tehran denied that any negotiations were taking place, while Israel continued its attacks on Iran. Markets are now pricing in the potential reopening of the Strait of Hormuz, as the conflict effectively shut the critical global chokepoint through which roughly 20% of the world’s oil flows, forcing Middle Eastern producers to significantly curb output. Iran remains in firm control of the narrow waterway, with only a limited number of ships able to pass depending on alliances.

WTI crude oil futures plunged more than 10% to around $87 per barrel on Monday after President Donald Trump signaled de escalation by ordering a five day pause on planned US strikes against Iranian energy infrastructure. The move followed what Trump described as constructive talks with Iran over the past two days aimed at resolving the conflict, with discussions set to continue this week. The announcement eased immediate supply fears after heightened tensions tied to a US deadline for Iran to reopen the Strait of Hormuz, a critical route for global oil shipments. Markets reacted sharply as the risk of further disruption to energy infrastructure temporarily declined, while attention now turns to whether diplomatic efforts can lead to a sustained reopening of the key waterway. However, Iran’s Fars News Agency denied any negotiations, attributing Trump’s move to Iran’s threat to strike all West Asian power plants.

Crude Oil WTI rose above 100, according to trading on a contract for difference (CFD).