Oil Prices Slip on Hopes for US-Iran Diplomatic Solution

Crude oil prices slipped on ongoing US-Iran negotiations, which have raised hopes for a diplomatic solution to the conflict. This has caused crude prices to turn lower after initially moving higher on a weak dollar index. The Ongoing hostilities in the Middle East are still supporting crude prices.

According to Barchart, September WTI crude oil (CLU26) is down -0.16 (-0.19%), and September RBOB gasoline (RBU26) is down -0.0740 (-2.29%). The ongoing US-Iran negotiations are supported by signs of increased oil tanker traffic through the Strait of Hormuz.

However, tensions remain high in the Middle East as the US maintains its blockade of Iranian oil shipments in the Persian Gulf. US Central Command said that American forces launched airstrikes against dozens of military targets in Iran today aimed at degrading Iran's ability to threaten US troops.