New Delhi, June 2: Global crude oil prices edged lower on Tuesday, giving up a portion of the strong gains recorded in the previous session, as investors closely monitored developments surrounding US-Iran negotiations and broader geopolitical tensions in the Middle East.
International benchmark Brent crude fell nearly 1% to trade around $94 per barrel, while US West Texas Intermediate (WTI) crude slipped below $91 per barrel. The decline comes after oil prices surged sharply on Monday amid concerns that escalating regional tensions could threaten global energy supplies.
Market participants remain focused on the uncertain status of diplomatic talks between Washington and Tehran. Conflicting reports regarding the progress of negotiations have created fresh uncertainty, prompting traders to reassess the potential impact on crude supplies and regional stability.
Investor sentiment continues to be influenced by developments around the Strait of Hormuz, one of the world’s most critical oil transit routes. Any disruption to shipping activity through the strategic waterway could significantly affect global energy markets, keeping risk premiums elevated despite the latest pullback in prices.
Meanwhile, signs of easing tensions in certain parts of the region offered limited support to market sentiment. However, traders remain cautious as geopolitical developments continue to unfold, with any escalation likely to trigger renewed volatility in oil markets.
In India, crude oil futures traded lower in line with international benchmarks. Domestic commodity markets reflected the cautious global mood, while the Indian rupee and equity markets also faced pressure amid concerns over geopolitical risks and external market uncertainties.
Analysts believe oil prices are likely to remain highly sensitive to diplomatic developments in the coming days. While progress in negotiations could ease concerns over supply disruptions and moderate prices, any setback or escalation in regional tensions may revive fears of tighter global supplies and push crude prices higher once again.