WTI crude oil futures fell below $97 per barrel on Tuesday amid signs that the United States and Iran may resume talks, following Washington’s decision to impose a blockade on the Strait of Hormuz. Negotiations are reportedly being arranged for another round of discussions before the current two-week ceasefire expires, with Pakistan mentioned as a possible venue. The parties failed to reach a deal after extended talks over the weekend, prompting Trump to announce a blockade on Iranian oil shipments. Saudi Arabia has called on the United States to lift the blockade and return to diplomatic engagement.
At the same time, the IEA warned that the conflict could wipe out global oil demand growth this year, resulting in the first annual decline since the pandemic, and noted that current prices may not fully reflect the scale of the disruption. The war has damaged key energy infrastructure and sharply curtailed traffic through the Strait of Hormuz, while an OPEC+ report showed that output fell by 7.9 million barrels per day in March.
