FX.co ★ Oil Holds Advance

WTI crude oil futures traded around $64.30 per barrel on Tuesday, consolidating gains from previous sessions as tensions between the US and Iran persisted despite signs of diplomatic progress. On Monday, Washington warned all US-flagged vessels to steer clear of Iranian waters and the Strait of Hormuz, even as negotiations between the two countries are set to continue following what both sides characterized as constructive talks in Oman last Friday. Still, uncertainty lingers over the prospects for a breakthrough, with Iran insisting on maintaining its uranium enrichment program, a central point of contention for the US. At the same time, investors are closely watching India’s purchases of Russian crude, after the latest US trade agreement with New Delhi was reportedly tied to a halt in Russian oil imports. As one of the largest buyers of Russian crude, any prolonged suspension of Indian purchases could offer substantial bullish support to global oil prices.