Hormuz Talks Send Oil Prices Lower Despite Tightening Market

Oil prices fell on Tuesday after reaching their highest level in over a week. The decline came as talks between Oman and Iran on shipping through the Strait of Hormuz made progress, according to Qatar's foreign ministry spokesperson.

The Brent crude futures price fell by 50 cents (0.57%) to $87.22 per barrel, while U.S. West Texas Intermediate crude futures dropped by 36 cents (0.44%) to $81.77 per barrel.

Fawad Razaqzada, an analyst at City Index and FOREX.com, said that any signs of de-escalation or a deal would be bad news for oil prices, as it would indicate reduced geopolitical risk.