Oil Prices Ease On Hopes Of Peace Talks Resumption Between US And Iran

Oil prices on Tuesday eased on hopes of resumption of peace talks between the United States and Iran as diplomatic efforts continue from the warring sides.

While the global benchmark Brent Crude was down by 1.42 percent during Asian trade hours, WTI Crude declined by 2.26 percent from the previous close.

Brent Crude was hovering around $98 per barrel, while WTI Crude was trading at the $96.81 per barrel mark.

The decline in oil prices on Tuesday was a result of revived peace talk hopes amid reports of the US and Iran planning to hold the second round of discussions from Thursday, with the host location likely being Pakistan’s Islamabad again.

The US and Iran had earlier agreed upon a two-week ceasefire. Hence, if the two sides remain in discussions after the end of the two-week period, the ceasefire may be extended further. This will be a relief for the world, which is grappling with a severe energy crisis after oil supplies from the Gulf region virtually stopped since the start of the war.

The diplomatic development has helped ease heightened tensions as the two sides left the first round of talks without reaching a consensus. The two main points of contention were Iran’s insistence on continuing its nuclear programme and establishing a toll at the Strait of Hormuz in return for safe passage.

This has led to a blockade of the Strait of Hormuz by the US in retaliation. However, Trump has said that he was in contact with Iranian officials and they “want to work a deal”.

Vice President JD Vance also said the US would be happy to treat heavily sanctioned Iran “like a normal country” if it does not pursue nuclear weapons.

Also, Israel and Lebanon are going to hold talks in Washington today, a first in decades as the two countries do not have diplomatic relations with each other.