WTI Wavers as Markets Assess US-Iran Peace Prospects

WTI crude oil futures fluctuated around $92 per barrel on Tuesday after surging 5.5% in the previous session, as traders weighed conflicting signals over the prospects for a US-Iran peace agreement. Iranian news agencies raised doubts about progress in negotiations, despite President Donald Trump stating a day earlier that talks were continuing. Trump said a memorandum of understanding to reopen the Strait of Hormuz could be reached within the next week, although several issues still need to be resolved. Uncertainty surrounding a possible extension of the ceasefire and the future of shipping through Hormuz has kept oil markets volatile after prices fell sharply last month on hopes for a breakthrough. Adding to the uncertainty, Trump and Israeli Prime Minister Benjamin Netanyahu gave differing accounts of discussions on Lebanon, while Lebanese officials said negotiations aimed at expanding a US-brokered ceasefire are continuing this week.

WTI crude oil futures fell around 1% toward $91 per barrel on Tuesday, following a 5.5% surge in the previous session, as investors weighed ongoing uncertainty surrounding US-Iran negotiations and the future of shipping through the Strait of Hormuz. Concerns that energy flows from the Persian Gulf could remain disrupted for longer continued to support market volatility. Prices had jumped on Monday after reports that Iran was suspending talks with Washington in response to Israel’s military operations in Lebanon, before easing after President Donald Trump said negotiations were still ongoing. Trump also said a memorandum of understanding to reopen the Strait of Hormuz could be reached as early as next week, although several issues remain unresolved. Mixed messages from Trump and Israeli Prime Minister Benjamin Netanyahu on the situation in Lebanon added to the uncertainty, while Lebanese officials said further ceasefire discussions are scheduled this week.

Brent crude futures slipped toward $91 per barrel on Tuesday, trimming gains from the previous session as investors continued to assess uncertainty surrounding US-Iran peace negotiations. On Monday, Iranian media reported that Tehran had suspended communications with Washington in response to Israeli strikes in Lebanon. Meanwhile, President Donald Trump said talks are still ongoing, adding that Iran has not informed Washington of any decision to end negotiations. President Trump and Israeli Prime Minister Benjamin Netanyahu also offered differing accounts of a recent call regarding the conflict in Lebanon. At the same time, Lebanese authorities called for any extension of the ceasefire agreement between Hezbollah and Tel Aviv to cover all Lebanese territory, underscoring the complexity of efforts to ease regional tensions.