Oil prices retreat as traders weigh potential US-Iran ceasefire and upcoming EIA stockpile report amid mixed geopolitical signals.
West Texas Intermediate crude trades around $74.50 in early European trading, extending losses on speculation of a US-Iran ceasefire deal. Reports suggest Washington and Tehran are nearing an interim agreement to reopen the Strait of Hormuz, a key oil transit route, with Oman mediating discussions.
The decline follows mixed signals from US and Iranian officials, though uncertainty in the Middle East persists. Shipping traffic in the Strait of Hormuz and Bab el-Mandeb remained stable Tuesday, per Kpler data. Traders are also awaiting the EIA’s weekly crude stockpiles report for further direction.
Analysts note markets are downplaying geopolitical risks, focusing instead on potential supply implications of a deal. Renewed tensions, however, could reverse the bearish sentiment and lift prices.