SINGAPORE – Oil prices continued to retreat on Tuesday amid hopes of reduced tensions between the US and Iran, easing concerns over prolonged disruptions to global energy supplies.
West Texas Intermediate (WTI) crude futures fell $1.23, or 1.42%, to $85.62 per barrel. Brent crude futures also moved downward, losing $1.13, or 1.22%, to trade at $91.44 per barrel.
In contrast, Murban crude physical prices advanced by $3.28, representing a 3.42% increase, to reach $99.17 per barrel.
The decline followed a sharp sell-off on Monday, when Brent crude closed 5.85% lower after touching its weakest level since August 31.
Market sentiment shifted after US President Donald Trump suggested that further military action against Iran was not currently necessary, reducing concerns about an extended conflict affecting oil supplies from the Middle East.
In a separate interview, Trump acknowledged that the conflict with Iran had negatively affected American interests but maintained that the military campaign was justified. He argued that the strikes had prevented Tehran from acquiring nuclear weapons and expressed confidence that history would ultimately support his decision.
The US president also indicated little appetite for expanding the military confrontation further, while defending the objectives behind the attacks on Iran’s nuclear programme.
Trump additionally linked several factors to the Republican Party’s reported setbacks in the midterm elections. These included the conflict with Iran, rising fuel costs, anti-Israel sentiment and the administration’s restrictive immigration policies.
Meanwhile, Iranian President Masoud Pezeshkian has expressed willingness to pursue negotiations with Washington, indicating that Tehran remains open to resolving the dispute through diplomatic engagement.
