Oil prices fall on potential US-Iran de-escalation talks but remain volatile amid ongoing military strikes and supply threats.
West Texas Intermediate crude dropped to $81.90 per barrel in Asian trading Tuesday, extending losses for a second day. The decline follows reports of diplomatic proposals aimed at easing US-Iran tensions, including a potential 10-day ceasefire.
Prices had previously faced upward pressure due to a tenth day of US military strikes on Iran and retaliatory actions, including a Houthi maritime embargo. Vessel traffic through the Strait of Hormuz has also declined sharply after recent attacks on commercial ships, tightening global supply expectations.
Market sentiment remains fragile as geopolitical risks persist, with President Donald Trump warning of direct accountability for US service member deaths. Supply disruptions in key shipping lanes continue to support crude benchmarks despite short-term diplomatic optimism.