WTI Crude Slips Below $82.50 as US-Iran Pause Strikes Geopolitical Tensions

WTI crude oil prices declined to around $82.50 per barrel on Tuesday after the US and Iran agreed to pause direct military strikes, paving the way for potential diplomatic negotiations.

This development removed some of the immediate upside pressure from oil markets, which had been volatile in recent weeks due to concerns over a broader regional conflict.

The geopolitical risk premium, estimated to be around $3 to $5 per barrel, has been unwound by traders, but not entirely. The price level remains elevated compared to pre-crisis averages near $75.

Fundamental supply factors also weigh on the outlook, including OPEC+ production cuts and low US strategic petroleum reserve levels.