Crude oil prices were highly volatile on Tuesday, oscillating between gains and losses but holding above $83 a barrel as traders weighed mixed signals from the Middle East. Early in the session, prices came under pressure after Pakistan’s Defense Minister, Khawaja Asif, said recent developments suggested the United States and Iran were “close to some sort of arrangement,” with conditions appearing to tilt in favor of peace.
Market optimism was further supported by reports that talks between Iran and Oman on partially reopening the Strait of Hormuz to maritime traffic had reached an advanced stage. However, those gains were capped by persistent uncertainty over whether the strategic chokepoint will in fact be reopened. A senior Iranian official reiterated that the Strait of Hormuz would remain closed until Tehran’s conditions are met by Washington.
Adding to the tension, US President Donald Trump on Monday adopted a harder line on Iran, demanding reparations for deaths he linked to attacks and domestic unrest, reinforcing concerns over a prolonged standoff.
