West Texas Intermediate (WTI) oil prices extended losses for the second consecutive day, trading around $73.40 per barrel during European hours on Tuesday, but pared daily losses due to ongoing uncertainty surrounding Iran's nuclear program [1]. Tehran denied a claim by US Vice-President JD Vance that Iran would allow International Atomic Energy Agency (IAEA) inspectors back into the country, clarifying that no new commitments had been made regarding nuclear inspection policies following the first round of bilateral talks in Washington aimed at ending the conflict [1].
Oil prices initially declined as signs of progress in US–Iran peace talks eased supply concerns. Washington issued Iran a 60-day waiver to resume oil sales in international markets, raising expectations of a quicker increase in global supply [1]. Shipping activity through the Strait of Hormuz has increased, with exporters such as Kuwait and the United Arab Emirates relying on alternative routes, while Iran exported more than 30 million barrels during the past week [1].
Market participants are awaiting the American Petroleum Institute's (API) weekly crude oil inventory report, which will be released later on Tuesday. A larger-than-expected decline in crude stockpiles would signal stronger demand and could support WTI prices, while a bigger-than-forecast inventory build may indicate weaker demand or oversupply, potentially weighing on WTI prices [1].
CONCLUSION
WTI oil prices are reacting to conflicting signals from US–Iran talks and Iran's stance on nuclear inspections, as well as expectations of increased supply following a US waiver. The upcoming API inventory report is expected to provide further direction for oil prices, with market sentiment remaining cautious amid ongoing geopolitical uncertainty.