Oil prices steady as traders monitor Iran tensions, U.S. economic data
Oil prices edged lower on Tuesday as the market waited for direction from news on diplomatic relations between the U.S. and Iran, efforts to end Russia’s war in Ukraine and data on the U.S. economy and U.S. oil inventories.
Brent futures fell 22 cents, or 0.32%, to $68.82 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 37 cents, or 0.57%, to $63.99.
Traders are “hesitant to press either direction until there is a clearer signal from diplomacy, the next inventory prints, or any confirmation that supply flows are being materially affected rather than merely threatened,” analysts at energy consulting firm Gelber & Associates said in a note.
Nuclear talks with the U.S. allowed Tehran to gauge Washington’s seriousness and showed enough consensus to continue on the diplomatic track, Iran’s foreign ministry spokesperson said on Tuesday.
U.S. and Iranian diplomats held talks through mediators in Oman last week in an effort to revive diplomacy, after U.S. President Donald Trump positioned a naval flotilla in the region, raising fears of new military action.
“The market is still focused on the tensions between Iran and the U.S.,” said Tamas Varga, oil analyst at brokerage PVM. “But unless there are concrete signs of supply disruptions, prices will likely start going lower.”
About a fifth of the oil consumed globally passes through the Strait of Hormuz between Oman and Iran, making any escalation in the area a major risk to global oil supplies.
Iran and fellow Organization of the Petroleum Exporting Countries (OPEC) members Saudi Arabia, United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, mainly to Asia.
Iran was the third-biggest crude producer in OPEC behind Saudi Arabia and Iraq in 2025, according to U.S. Energy Information Administration data.
European Union foreign policy chief Kaja Kallas said on Tuesday she would propose a list of concessions that Europe should demand from Russia as part of a settlement to end the war in Ukraine.
The move is part of efforts to squeeze Russian revenue. Russia was the world’s third-biggest crude producer behind the U.S. and Saudi Arabia in 2025, according to EIA data.
Indian Oil Corp bought six million barrels of crude from West Africa and the Middle East, traders said, as India steered clear of Russian oil in New Delhi’s push for a trade deal with Washington.
In Venezuela, expanded U.S. licenses are expected to restore the South American OPEC member’s oil production by mid-2026 to levels seen before a U.S. naval blockade in December, the EIA said on Tuesday.
Source: Reuters.com
