West Texas Intermediate, or the US crude variant, fell as much as 6% on Tuesday, extending Monday’s losses, to fall towards the $90 a barrel mark. Brent crude ended Monday’s session just above $96 a barrel.
Contracts could not be settled on Monday due to a market holiday across most parts of the globe, including the US.
US President Donald Trump wrote on Truth Social that talks with Iran were “proceeding nicely” and then in the same breath, warned of more intense attacks if a deal was not reached.
Hostilities continue to persist with loud explosions being heard near the Strait of Hormuz, near Iran’s coastal cities of Sirik and Jask, according to the Fars news agency. According to state-run Nour News, several US and Israeli warplanes targeted several Iranian vessels south of Larak Island.
Israel also said on Monday that it will intensify strikes against Hezbollah in Lebanon. A settlement between Israel and Lebanon is one of the key talking points for Iran in negotiating any settlement with the US.
Oil prices are on course for a monthly loss in May as a ceasefire between the US and Iran held out for most of the duration and hopes of a deal outweighed the fast-depleting stockpiles.
At present, it’s “premature to consider a peace deal will be reached let alone adhered to,” said Saul Kavonic, senior energy analyst at MST Marquee. “There have been claims by both sides of negotiation success, or the strait opening in the past few months already, only for it to not materialize.”
(With Inputs From Agencies)
