Oil prices decline 1% amid optimism about the resumption of supplies from the Middle East
Oil prices fell by more than one dollar on Tuesday, paring their gains in the previous session, amid expectations of peace talks between The United States and Iran this week, which will lead to an increase in the flow of supplies from the main oil-producing Middle East region.
And Brent rose by $1.04, or 1.1%, to reach $94.44 a barrel at 06:00 GMT. The price of US West Texas Intermediate crude for May also fell by $1.66, or 1.9%, to $87.95.
Both contracts rose on Monday, with Brent rising by 5.6% and WTI by 6.9%, after Iran again closed the Strait of Hormuz, closing the main oil transport artery, and the United States seized an Iranian cargo ship as part of its blockade of the country’s ports.
Investors are currently focusing on the possibility that this week’s talks will result in an extension of The current ceasefire or a final agreement, although the possibility of further conflict and disruptions to oil flows remains.
Shipping traffic through the Strait of Hormuz, through which about a fifth of the world’s oil supplies pass, remained limited on Monday.
A memo indicated by "Citigroup" If the unrest in the Strait continues for another month, total losses could rise to about 1.3 billion barrels, with prices expected to reach approximately $110 per barrel in the second quarter of 2026.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
