FX.co ★ Oil Eases Ahead of US-Iran Talks

WTI crude futures edged lower toward $86 per barrel on Tuesday, paring gains from the previous session, after reports that Iran will send a delegation to Islamabad for a second round of talks with the US before the current two-week ceasefire expires. The decision marks a shift from Tehran’s earlier position that it would not participate in further peace negotiations. At the same time, President Donald Trump said he is unlikely to extend the existing truce if no agreement is reached by the end of the week, adding that the Strait of Hormuz will remain closed until a deal is finalized. The strategic waterway remains central to the negotiations, with tensions flaring again over the weekend after the US seized an Iranian vessel and Tehran responded by targeting ships and reasserting control over the strait. Other major points of contention between the two parties include Iran’s nuclear program and ongoing regional hostilities.