Crude Oil Rises Above $93

WTI prices rose more than 1% on Tuesday afternoon to above $93 per barrel after a volatile session, as investors awaited updates on the Iran conflict. Iran is reviewing a U.S. proposal to end the war but has not been in contact with Washington for several days, despite President Trump’s statement that negotiations remain underway. Trump said on Monday that talks were progressing and that an agreement to extend the ceasefire reached in April and reopen the strait could be finalized within a week. However, Israel continued its military operations in southern Lebanon on Tuesday, a day after Trump urged Netanyahu to refrain from striking Beirut in an effort to prevent the conflict from widening.

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.