Crude oil slipped to around $82 per barrel on Tuesday, extending losses for a third straight session after President Donald Trump said the US was engaged in “good talks” with Iran aimed at ending the conflict in the Middle East. His comments bolstered expectations that normal oil flows from the region could resume. Trump reportedly indicated he had decided to suspend strikes on Iran to allow negotiations another chance.
The US quietly halted attacks on the Islamic Republic late Friday after nearly two weeks of fighting, while Tehran also stopped retaliatory strikes on US bases in neighboring countries. Over the weekend, Iranian and Omani negotiators met in a bid to secure an agreement to restore shipping through the strategically vital Strait of Hormuz.
At the same time, supply conditions improved elsewhere as crude exports resumed at the Caspian Pipeline Consortium terminal on Russia’s Black Sea coast, a key outlet for Kazakh oil that had recently been disrupted by Ukrainian drone attacks.