WTI crude oil futures slipped to $94.40 per barrel on Tuesday, erasing a modest gain from Friday, as renewed tensions between the United States and Iran dampened hopes for an interim deal to reopen the Strait of Hormuz. Recent clashes have included US strikes near the strategic waterway, and reports indicate the US Navy has resumed escorting tankers through the area. Meanwhile, Iran’s Revolutionary Guard said it fired on an F-35 fighter jet and several drones it claimed had entered Iranian airspace.
These developments come amid ongoing negotiations aimed at ending a conflict that has roiled global energy markets. US Secretary of State Marco Rubio noted that the talks could take several more days as both sides work to finalize the language of an initial agreement. After sharp gains in March and April, oil prices are now headed for a monthly decline, as traders weigh a fragile ceasefire and the potential reopening of Hormuz against signs of rapidly tightening global inventories.
