WTI crude oil futures rose to $88.50 per barrel on Tuesday after earlier falling to $85.50, as markets weighed the prospects of potential US–Iran talks that remain stalled ahead of a ceasefire deadline. Iran has not confirmed whether it will participate in negotiations in Pakistan, while key disputes persist, including over access to the Strait of Hormuz.
President Donald Trump said Vice President JD Vance is prepared to join the talks but stressed that the United States will not rush into an agreement and could resume military action if no deal is reached. Oil prices remain highly volatile as traders balance shifting diplomatic expectations against an almost complete halt in traffic through the Strait of Hormuz, where only a handful of vessels are currently passing.
The conflict continues to disrupt supply, with traders warning of mounting demand destruction and deepening shortages. Global leaders, including China, have called for an immediate ceasefire and the rapid restoration of normal shipping flows.
