Oil Prices Slide as U.S., Iran Attempt Fresh Peace Talks
Oil prices slid in the global commodity market on Tuesday as optimism over US-Iran talks cooled supply fears, after rallying more than 8% on US President Donald Trump’s decision to impose a blockade on the Strait of Hormuz following failed weekend negotiations.
International benchmark Brent crude futures traded at $98.54 per barrel, down around 0.8% from the previous close of $99.36. US benchmark West Texas Intermediate (WTI) fell about 0.1% to $96.51 per barrel, compared with $96.57 in the previous session.
The US military has begun enforcing a blockade on all maritime traffic to and from Iranian ports, effective 1400 GMT on Monday.
The US Central Command (CENTCOM) said the measures will be “enforced impartially against vessels of all nations” entering or leaving Iranian ports in the Gulf and the Gulf of Oman.
“CENTCOM forces will not impede freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports,” it added.
The move followed rare direct talks between Washington and Tehran in Pakistan over the weekend aimed at ending the conflict that began on Feb. 28, though no agreement was reached.
Citing a senior official, The Wall Street Journal reported that more than 15 US warships have been deployed to support the blockade.
The move targeting the Strait of Hormuz, a critical chokepoint for around 20% of global oil supply, heightened disruption risks and drove sharp intraday gains in Brent and West Texas Intermediate (WTI) crude prices on Monday.
However, diplomatic efforts that partially eased supply disruption risks reversed earlier gains.
US Vice President JD Vance said Monday that talks with Iran in Pakistan made “a lot of progress,” but cautioned that a failure to fully reopen the Strait of Hormuz could “fundamentally change” the trajectory of negotiations.
Meanwhile, Pakistan has offered to host a second round of US-Iran talks in Islamabad in the coming days ahead of the ceasefire deadline, according to two Pakistani officials cited by international media.
The officials, speaking on condition of anonymity, said the proposal remains contingent on whether the parties opt for an alternative venue. One official added that, despite yielding no agreement, the initial talks should be seen as part of an ongoing diplomatic process rather than a one-off attempt.
