WTI crude futures climbed back toward $95 per barrel on Tuesday after dropping more than 5% in the previous session, as investors continued to gauge how the conflict in the Middle East might affect global supplies. Oil prices fell sharply on Monday when concerns over a prolonged closure of the Strait of Hormuz eased, following reports that several tankers had safely passed through the key shipping corridor over the weekend. That development raised hopes that the waterway could soon fully reopen.
India is negotiating for six additional crude tankers, while multiple countries are reportedly engaged in back-channel talks with Iran to secure safe passage for their vessels. At the same time, the United States is allowing Iran to continue exporting crude through the Strait of Hormuz, and US President Donald Trump has urged other nations to back efforts to protect commercial traffic in the area. A direct communication channel between Washington and Tehran has also reportedly been activated.
Separately, the US is preparing to release the first tranche of crude from its emergency reserves, and the International Energy Agency has indicated there is further scope to draw on global stockpiles if needed.
