Crude Oil Cuts Gains

WTI crude oil futures cut some of the gains to trade around $90 per barrel on Tuesday afternoon after rising as much as 5% earlier in the session after President Trump extended the US ceasefire with Iran, saying Tehran’s government was “seriously fractured.” He said the truce would remain in place until Iran’s leaders present a “unified proposal” to end the war. Earlier in the session investors accepted that US-Iran negotiations had reached an impasse ahead of the approaching ceasefire deadline. Vice President JD Vance had been expected to travel to Pakistan on Tuesday, but the trip was reported to get delayed after Iran failed to respond to US negotiating proposals. The conflict continues to weigh on supply, with estimates of demand destruction already near 4 million barrels per day and potentially rising to 5 million barrels per day, roughly 5% of global supply, with Asia expected to bear the brunt of the impact.

WTI crude oil futures rose as much as 5% to trade above $92 per barrel on Tuesday afternoon as investors increasingly accepted that US-Iran negotiations had reached an impasse ahead of the approaching ceasefire deadline. Vice President JD Vance had been expected to travel to Pakistan on Tuesday, but the trip was delayed after Iran failed to respond to US negotiating proposals, according to NY Times. Earlier, President Trump said Iran had “no choice” but to send representatives. Speaking to CNBC, he added that the US remained in a strong position and was “ready to go” with fresh bombing strikes if no agreement is reached. The conflict continues to weigh on supply, with estimates of demand destruction already near 4 million barrels per day and potentially rising to 5 million barrels per day, roughly 5% of global supply, with Asia expected to bear the brunt of the impact.

WTI crude oil futures climbed to almost $90 per barrel on Tuesday after dipping to $85.5 earlier, as markets focused on potential US-Iran talks with both sides still deadlocked ahead of a ceasefire deadline. Iran has not confirmed participation in negotiations in Pakistan, while disagreements persist over key issues including access to the Strait of Hormuz. President Donald Trump said Vice President JD Vance is ready to attend talks but warned the US will not rush a deal and could resume military action if no agreement is reached. Oil prices remain volatile as traders weigh shifting prospects for diplomacy and the near standstill in Hormuz traffic, with only a handful of vessels passing. The conflict continues to disrupt supply, with estimates of demand destruction already around 4 million barrels per day and potentially rising to 5 million, or about 5% of global supply, with Asia most affected. China has called for an immediate ceasefire and restoration of shipping flows.