Oil benchmarks retreat from recent highs as investors weigh military tensions against diplomatic efforts to secure Gulf energy flows.
Brent crude futures fell 0.5% to $88.80 a barrel, while WTI crude declined 0.5% to $82.81, reversing Monday’s gains. Both contracts had briefly traded above key resistance levels after weekend military escalations in the Middle East raised supply disruption risks.
Earlier, Brent settled 1.3% higher at $89.22, and WTI rose 0.9% to $83.23. The pullback follows diplomatic talks involving Pakistani and Iranian officials, alongside signals from Washington about potential negotiations, despite ongoing hostilities.
A tanker attack in the Strait of Hormuz, claimed by Iran’s Revolutionary Guards, underscored persistent risks. The US military confirmed the incident, which forced crew abandonment, but markets focused on de-escalation efforts.