- Oil prices fell 1% on Tuesday as market participants continued to weigh a pause in U.S. strikes on Iran, which has raised hope of a diplomatic solution to their conflict and the normalisation of Middle East energy flows.
- Brent crude futures were down $0.54, or 0.6%, at $87.82 by 0046 GMT.
- U.S. West Texas Intermediate crude was at $81.95 a barrel, down $0.66, or 0.8%.
- Both contracts fell 1% earlier in the session to their lowest level in more than a week.
- U.S. President Donald Trump said on Monday the United States was having "good talks" with Iran and that there was a chance of a resolution.
- "For now, the relief that an off-ramp has been found has taken the heat out of prices and eased concerns around Houthi attacks on Saudi infrastructure."
- Barclays analysts said in a note on Monday "flows through the strait remain subdued".
- In the week ended July 24, crude oil and refined product net exports through the strait averaged 2.9 million barrels a day compared with 5.9 million in the previous week.
Oil prices fell 1% on Tuesday, with Brent crude at $87.82 and West Texas Intermediate at $81.95, as investors weighed a potential pause in U.S. strikes on Iran. This development has raised hopes for a diplomatic resolution and the normalization of Middle East energy flows.123
U.S. President Donald Trump indicated on Monday that the United States was having "good talks" with Iran, suggesting a chance for resolution. The market reacted positively, with analysts noting that the relief from potential conflict has eased concerns about Houthi attacks on Saudi infrastructure.56
Both Brent and WTI contracts fell 1% earlier in the session, reaching their lowest levels in over a week. Barclays analysts reported that flows through the strait remain subdued, with crude oil and refined product net exports averaging 2.9 million barrels a day in the week ended July 24, down from 5.9 million the previous week. This decline in exports reflects ongoing tensions and market adjustments as investors remain cautious amid geopolitical uncertainties.78
As the situation develops, market participants will continue to monitor diplomatic efforts and their potential impact on oil prices and supply chains.
“Brent crude futures were down $0.54, or 0.6%, at $87.82, while U.S. West Texas Intermediate crude was at $81.95 a barrel, down $0.66, or 0.8%. Analysts noted that crude oil and refined product net exports through the strait averaged 2.9 million barrels a day, significantly lower than the previous week's 5.9 million.”
