Brent crude oil is currently trading at around $97 per barrel as global oil prices declined on Tuesday amid expectations of continued negotiations between the United States and Iran and the possibility of extending a ceasefire agreement.
After Asian markets opened, Brent crude for June delivery fell by 1.88%, reaching $97.49 per barrel. At the same time, U.S. West Texas Intermediate (WTI) crude for delivery in the following month dropped by 2%, trading at $96.91 per barrel. Therefore, the overall decline reflects growing market sensitivity to geopolitical developments in the Middle East.
Moreover, the downward pressure on Brent oil prices comes after reports of stalled talks in Islamabad and the subsequent return of U.S. officials to Washington. U.S. Vice President J.D. Vance stated on Monday that the next steps in negotiations depend largely on Iran’s position and willingness to cooperate.
He added that the United States has already presented several proposals, but the continuation of talks and the possibility of reaching a final agreement remain uncertain. According to Vance, “Whether negotiations continue and whether we can reach an agreement depends on Iran’s decision, as we have already made significant offers.”
His remarks came at a time when Washington has also increased pressure on maritime activity in the region, announcing measures aimed at restricting vessels linked to Iran or those operating from Iranian ports, particularly in sensitive waterways.
Market analysts warn that such restrictions could significantly impact global supply. Additionally, Vivik Zar, an analyst at Commonwealth Bank of Australia, noted that blocking oil shipments from Iran or its ports could remove up to 1.7 million barrels per day from global oil markets.
He explained that any disruption in Iranian exports would quickly tighten global supply conditions, potentially reversing recent price declines and increasing volatility in energy markets in the coming weeks.
