Brent crude prices ticked higher Tuesday amid speculation that Tehran could insist on charging vessels passing through the Strait of Hormuz as part of a ceasefire deal with the U.S. Iran's foreign ministry said navigation of the vital shipping channel "will have costs."
Oil prices traded mixed Tuesday as investors weighed signs of progress in U.S.-Iran negotiations that could eventually reopen the Strait of Hormuz. This comes even as fresh U.S. military operations in southern Iran underscored the fragility of the situation.
Oil futures were mixed early Tuesday in Asia as traders assess Middle East developments.
U.S. crude futures fell more than 6% in early Asian trade on Tuesday after Nikkei reported that the U.S. and Iran are discussing a plan to reopen the Strait of Hormuz about 30 days after the two countries reach a deal to end hostilities.
Crude remains dramatically elevated from prewar levels after surging more than 30% since US, Israel launched strikes against Iran in late February.
Brent crude fell more than 5% and Dow Jones Industrial Average futures rallied even as investors remain skeptical about the impact of the U.S.-Iran talks.
The stock market is doing something that would have seemed impossible just weeks ago.
Crude oil futures plunged as traders dumped supply fear trades and stripped out geopolitical risk premium tied to Iran tensions.
Global oil-price benchmarks were unlikely to return to pre-conflict levels this year even if the U.S. and Iran strike a deal, said Australian wealth manager AMP.
Trump had said an agreement with Iran to open the Strait of Hormuz, among other issues, was largely negotiated and would be announced soon.
Oil prices slipped on Monday as the U.S. and Iran remained at odds over a peace deal, fueling concerns that continued restrictions on Middle East oil shipping via the Strait of Hormuz could hurt global economic growth.
West Texas Intermediate crude started 2026 at $57 a barrel and now trades near $112, a near-doubling driven by Iran-related tensions around the Strait of Hormuz and a sustained geopolitical risk premium on seaborne barrels.