Oil price today: Oil prices retreat on US-Iran hopes as stocks move sideways
European and US stocks traded without direction on Tuesday despite oil prices retreating from recent highs as investors weighed the prospects for increased tanker traffic through the Strait of Hormuz.
Oil prices slipped on Tuesday as investors considered the possibility of increased tanker traffic through the Strait of Hormuz. Iran's President Trump had previously dismissed Iran's offer for a seven-day truce, causing oil prices to surge on Monday. However, prices fell back after Trump stated he expected talks with Iran to continue.
Brent crude oil was trading near $103 per barrel, down 2.2%, while West Texas Intermediate was 2.5% lower at $90.33. Traders remain vigilant for any signs of progress between the US and Iran as they attempt to end hostilities through separate talks with mediators. Wall Street's main indices showed little movement at opening bell.
Despite elevated oil prices, government bond yields are at multi-year highs, contributing to losses in some Asian stock markets. Officials in Tehran privately expressed doubts about resolving the Strait of Hormuz issue before the US midterm elections in five weeks. The strategic waterway is crucial to global oil and gas deliveries, with Iranian-backed Houthis seizing the Red Sea coast, including Bab al-Mandab Strait, another key shipping lane.
High inflation is pressuring the US Federal Reserve and European Central Bank to raise interest rates, supporting the dollar and putting pressure on gold. Additionally, artificial intelligence concerns led OpenAI to withdraw its Astra 6.1 model, and Shein's shares dropped nearly 14% in Hong Kong following disappointing earnings.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
