Oil Prices Fall Over 1% Amid US-Iran Conflict Assessment
Oil prices fell over 1% to $87 per barrel on Tuesday as investors assessed the possibility of a diplomatic resolution to the US-Iran conflict.
The decline in oil prices came after US President Donald Trump stated that Washington was engaged in 'good talks' with Iran, raising hopes for an easing of tensions.
However, Trump also warned that US strikes could resume if negotiations failed, leaving markets uncertain about whether the current pause will develop into a lasting diplomatic settlement.
The disruption to energy flows through key shipping routes remains a major concern for global oil markets, with crude oil and refined product net exports through the Strait of Hormuz averaging 2.9 million barrels per day in the week ended July 24, down sharply from 5.9 million barrels per day in the previous week.
The balance between supply risks and demand weakness is likely to remain central to the oil market outlook, with any improvement in supply flows potentially putting further downward pressure on prices.