Oil prices edged lower on Tuesday as market participants awaited developments from potential US–Iran talks in Doha, even as renewed missile exchanges between the two sides over the weekend raised concerns about the stability of an interim ceasefire aimed at ending a four-month-long conflict.
Brent crude futures for August delivery, which were nearing expiry on Tuesday, fell 1.03% or 75 cents to $72.40 per barrel.
The more actively traded September Brent contract declined 0.54% or 40 cents to $73.51 per barrel.
Meanwhile, US benchmark West Texas Intermediate (WTI) crude slipped 0.66% or 47 cents to $70.32 per barrel.
Market sentiment was shaped by mixed diplomatic signals. Iranian Deputy Foreign Minister Kazem Gharibabadi, quoted by Reuters, said that Iranian and Omani experts are expected to begin discussions in the coming days on revising transit routes through the Strait of Hormuz.
He also stated that Iran would aim to ensure vessels follow designated shipping lanes.
However, Iranian Foreign Ministry spokesperson Esmaeil Baghaei later clarified that no official meetings or negotiations with the United States have been scheduled in the near term.
These contradictory statements highlighted the uncertainty surrounding diplomatic efforts.
The confusion comes amid a fragile ceasefire agreement reached on June 17, which had temporarily halted hostilities that previously disrupted global oil flows through the strategically critical Strait of Hormuz.
The agreement also carries political implications, particularly for US President Donald Trump ahead of upcoming congressional elections.
Israel has remained outside the US–Iran peace framework and has publicly distanced itself from the ceasefire arrangement, adding further complexity to the geopolitical landscape.
Despite ongoing tensions, including renewed strikes and attacks on vessels in the Strait of Hormuz, shipping data indicates that energy exports from key Middle Eastern producers have not been significantly disrupted.
Crude oil and liquefied natural gas (LNG) shipments continue to be loaded and exported, helping prevent a sharper supply shock in global markets.
Overall, oil prices remain under pressure from geopolitical uncertainty, with traders closely watching whether diplomatic efforts can stabilise the situation or if renewed conflict will escalate supply risks.
