Crude oil hovered near $86 per barrel on Tuesday after sliding more than 4% in the previous session, its lowest level since late August, as intensified diplomatic efforts sought to end the conflict in the Middle East. President Donald Trump voiced optimism about a potential resolution, citing “momentum toward an end” to the hostilities following his meeting with Qatar’s prime minister.
At the same time, Congressional Democrats were reported to be weighing the use of the Dec. 11 government funding deadline as leverage to press Trump to halt the war. Nonetheless, geopolitical risks remained elevated. US forces were said to have launched another strike on Iran’s Qeshm Island, and US Secretary of State Marco Rubio sought to lower expectations for rapid progress in negotiations.
Maritime security also stayed in focus, with tanker vessels continuing to face attacks in the Strait of Hormuz, while clashes involving Saudi Arabia and Iran-backed Houthi forces persisted. Elsewhere, investors looked ahead to monthly oil market reports from the US EIA, OPEC, and the IEA for fresh guidance on global supply and demand dynamics.
