International crude oil prices fell by up to 3% on Tuesday as hopes for a new US-Iran dialogue to resolve conflicts led to a decrease in supply risk concerns related to the US blockade of the Strait of Hormuz. Brent crude futures traded at $96.6 per barrel, down 2.77%, while US West Texas Intermediate (WTI) crude dropped over 3% to $95.69.
In the previous session, both Brent crude and WTI crude settled in negative territory, with Brent crude down 3.64% at $99.36 and WTI crude closing at $96.57, a 7.79% decrease. Oil prices had surged more than 8% on April 12 after US President Donald Trump announced a blockade of Iran’s ports.
Reports on Monday suggested that the US military’s blockade of the Strait of Hormuz might extend to the Gulf of Oman and the Arabian Sea. Ship-tracking data revealed that two vessels turned back in the strait following the blockade. The US-Iran dialogue continues, with Trump mentioning on Monday that Iran is interested in making a deal.
