Oil Prices Slide Below $82 as Trump-Iran Talks Ease Middle East Supply Fears

Oil prices took another hit on Tuesday, slipping below US$82 per barrel as President Donald Trump's comments on Iran eased concerns about supply disruptions in the Middle East. The slide marks a three-session losing streak for oil markets.

According to Trump, the United States is engaged in 'good talks' with Iran aimed at ending the conflict and restoring shipping activity through the Strait of Hormuz, a major global energy transit route. This development, combined with the resumption of crude exports from Russia's Caspian Pipeline Consortium terminal, has improved supply conditions.

The US dollar held near a one-month high on Tuesday, buoyed by expectations of a Federal Reserve interest rate increase at its upcoming meeting. The dollar index edged up 0.03% to 101.55, while the euro slipped 0.01% to US$1.1366 and sterling eased 0.02% to US$1.3284.

Markets are pricing in a 36.3% probability of at least a 25-basis-point rate increase at the Fed's policy announcement, up from 16% a week earlier. 'If we do get a surprise hike, surely that's going to lend support to the dollar,' said Mahjabeen Zaman, head of foreign exchange research at ANZ Bank.