Crude oil traded near $80 per barrel on Tuesday, stabilizing after a roughly 5% plunge in the previous session, as investors tracked renewed US-Iran diplomacy for signs of a potential agreement to fully reopen the Strait of Hormuz. President Donald Trump described his proposal for talks as Tehran’s final chance to reach a deal and said he was confident the strait would reopen soon. Iran, however, denied that any direct negotiations with the US are taking place, while noting that discussions with Oman aimed at boosting traffic through the strait are making progress.
In other developments, Turkey and Iraq extended a key oil pipeline agreement by one year, shoring up alternative export routes, and Kazakhstan resumed crude shipments via the Caspian Pipeline Consortium after a brief interruption. Meanwhile, OPEC+ signed off on another small production increase, completing the rollback of supply cuts initially implemented in 2023.
