- WTI falls on expectations of further US–Iran talks to secure a longer-term ceasefire before the current truce ends.
- President Trump said Tehran initiated contact, while Iranian President Masoud Pezeshkian signaled willingness for lawful dialogue.
- OPEC+ reported that March output fell 7.9 million bpd, largely due to the Strait of Hormuz shutdown.
West Texas Intermediate (WTI) oil price remains subdued for the third successive day, trading around $91.50 during the Asian hours on Tuesday. Crude oil prices fall after reports that the United States (US) and Iran may hold further talks to secure a longer-term ceasefire before the current two-week truce ends.
US President Donald Trump said Tehran initiated contact with Washington, while Iranian President Masoud Pezeshkian expressed willingness to continue dialogue, provided it stays within international law and regulations.
US Vice President JD Vance indicated, in an interview with Fox News, that ongoing diplomatic efforts and a possible path toward US-Iran conflict de-escalation. Vance adopted a cautiously optimistic tone regarding negotiations with Iran, indicating that meaningful progress has been made despite the absence of a breakthrough. He stated that recent discussions over the weekend were constructive, providing US officials with deeper insight into Iran’s negotiating stance.
US Energy Secretary Chris Wright said at the Semafor World Economy Forum in Washington that energy prices are likely to stay elevated and could rise further until vessel traffic through the Strait of Hormuz normalizes. Wright added that disruptions to the key shipping route continue to underpin price pressures.
Additionally, President Trump acknowledged the domestic impact of high energy costs, warning that oil and gasoline prices could remain elevated through the US midterm election period.
Meanwhile, a report from OPEC+, the Organization of the Petroleum Exporting Countries and its allies, showed that the group’s output declined by 7.9 million barrels per day in March, largely due to the shutdown of the Strait of Hormuz. Investors are now focusing on the upcoming monthly report from the International Energy Agency (IEA) for clearer signals on global supply-demand dynamics.
