- WTI price drifts higher to near $86.00 in Tuesday’s Asian session.
- Iran said it will not negotiate under the “shadow of threats.”
- Traders will closely monitor the developments surrounding the next round of US-Iran talks.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $86.00 during the Asian trading hours on Tuesday. The WTI price edges higher as tensions rise between the United States (US) and Iran. Traders brace for the American Petroleum Institute (API) report, which will be published later on Tuesday.
The Guardian reported that US Vice President JD Vance is expected to fly to Islamabad at the head of a US diplomatic delegation on Tuesday if Iran agrees to further talks in the Pakistani capital as the deadline for the current ceasefire looms.
Diplomatic efforts to end the US-Israel war on Iran remain uncertain, with Iranian Parliament speaker Mohammad Bagher Ghalibaf saying Tehran will not negotiate under the “shadow of threats.” US President Donald Trump stated that the blockade on Iranian ports will remain until Tehran agrees to a deal.
“Oil markets continue to gyrate in response to oscillating social media posts by the US and Iran, rather than the realities on the ground, which remain challenging for oil flows to resume in a rapid fashion,” said Saul Kavonic, analyst from financial services firm MST Marquee.
The API report will be released later on Tuesday. A larger-than-expected crude oil inventory draw indicates stronger demand and could lift the WTI price, while a bigger build than estimated signals weaker demand or excess supply, which might weigh on the WTI price.
