Oil prices fluctuated with the US-Iran agenda

Oil prices fluctuated after a two-day decline as traders weighed mixed signals about the progress of peace talks between the United States and Iran.

Brent crude traded around $104 a barrel after floating in a range of more than $6 on Tuesday. West Texas Intermediate (WTI) crude oil remained around $97.

According to Bloomberg, Tehran and Washington are examining new proposals from mediators on how to resolve their differences. Despite this, Iran's National Security Director said in a statement on the X platform that the US response has been "unsatisfactory" so far.

The latest diplomatic efforts follow weeks of escalating tensions as Iran stepped up its attacks on ships in the Strait of Hormuz and US President Donald Trump threatened new attacks after the midterm elections.

Oil fell sharply on Monday on signs of progress, but the volatility returned on Tuesday as deep disagreements cast doubt on a breakthrough.

Post-election strategies

Global benchmark Brent crude has risen more than 70% this year as a nine-month war has disrupted flows from the Persian Gulf and roiled energy markets. Diesel and gasoline prices also rose, including in the United States, potentially affecting the outcome of the midterm elections.

Raymond James & Associates Inc. "The elections are important only as a calendar milestone that can affect the White House's Iran strategy," analyst Pavel Molchanov evaluated. Molchanov added that the administration may now have "more flexibility" in the steps ahead as the political impact of high gasoline prices has been largely absorbed before the vote.

For now, Trump is signaling caution. Stating in his interview with the Financial Times that the USA has no immediate plans to attack Iran, Trump said, "We are ready if we need to go, but it may not be necessary."