Oil prices displayed a mixed trend on Tuesday, as optimism surrounding potential progress in US-Iran negotiations was counterbalanced by fresh US military strikes in Iranian territory. The US benchmark West Texas Intermediate (WTI) crude fell by 5.46 percent to settle at USD 91.33 per barrel, while Brent crude from the North Sea rose by 2.35 percent to trade at USD 98.40 per barrel.
The market reaction followed a day when oil prices had dipped below the USD 100 mark, buoyed by hopes that the Strait of Hormuz might reopen after signs of advancing talks between the United States and Iran. Investor confidence had strengthened after US President Donald Trump stated on Truth Social that negotiations with Tehran over an interim arrangement to extend the ceasefire and reopen the vital shipping route were proceeding nicely. This statement fueled expectations that both sides were moving closer to an agreement.
US Secretary of State Marco Rubio also hinted at possible progress during remarks in New Delhi. We thought we might have some news last night, he said. Maybe today.
Despite these diplomatic signals, the situation in the region remained tense. As Iranian negotiators arrived in Doha for discussions aimed at ending the conflict, US Central Command announced that American forces had carried out strikes on missile launch sites in southern Iran and on boats allegedly attempting to lay mines. According to US Central Command spokesman Captain Tim Hawkins, the operations were defensive in nature and intended to protect our troops from threats posed by Iranian forces.
Fresh clashes were also reported in the Strait of Hormuz, where US and Israeli fighter jets struck several Iranian vessels south of Larak Island. Iran's state-run Nour News reported that several Iranian personnel were killed in the strikes, though no additional details were provided.
The latest escalation has cast fresh uncertainty over the ceasefire that came into effect on April 8, at a time when markets had started pricing in the possibility of a longer truce and the reopening of the Strait of Hormuz. The waterway has remained largely closed since late February, after the US and Israel launched strikes on Iran, triggering a major energy shock. Iran subsequently tightened its control over the strait, which carries approximately 20 percent of global oil supplies.
The conflict, which began on February 28, is now nearing the three-month mark, continuing to keep global energy markets volatile and investors on edge.
