Oil Prices Mixed Amid US-Iran Talks and Military Strikes

Oil prices remained mixed on Tuesday as hopes of progress in US-Iran talks were offset by fresh US military strikes in Iran. While the US oil benchmark West Texas Intermediate slipped 5.46% to $91.33 a barrel, Brent crude from the North Sea moved higher, gaining 2.35% to trade at $98.40 per barrel.

The market reaction came a day after oil prices had dropped below the $100 mark amid hopes that the Strait of Hormuz could reopen following signs of advancing negotiations between the United States and Iran. Investor optimism had strengthened after US President Donald Trump said talks with Tehran over an interim arrangement to extend the ceasefire and reopen the crucial shipping route were “proceeding nicely.” The remarks were made in a Truth Social post and added to expectations that both sides were moving closer towards an agreement. US Secretary of State Marco Rubio also hinted at possible progress during remarks in New Delhi. “We thought we might have some news last night,” he said. “Maybe today.”

Despite the diplomatic signals, the situation in the region remained tense. As Iranian negotiators reached Doha for discussions aimed at ending the conflict, US Central Command announced that American forces had carried out strikes on missile launch sites in southern Iran and on boats allegedly attempting to place mines. According to US Central Command spokesman Captain Tim Hawkins, the operations were defensive and intended “to protect our troops from threats posed by Iranian forces.”

Fresh clashes were also reported in the Strait of Hormuz, where US and Israeli fighter jets struck several Iranian vessels south of Larak Island. Iran’s state-run Nour News reported that several Iranian personnel were killed in the strikes, though no additional details were released.

The latest escalation has cast fresh uncertainty over the ceasefire that came into effect on April 8, at a time when markets had started pricing in the possibility of a longer truce and the reopening of the Strait of Hormuz. The waterway has remained largely shut since late February after the US and Israel launched strikes on Iran, triggering a major energy shock. Iran subsequently tightened control over the strait, which carries around 20 per cent of global oil supplies. The conflict, which began on February 28, is now approaching the three-month mark, continuing to keep global energy markets volatile and investors on edge.