Oil prices continued their downward trend after closing sharply lower on Tuesday, driven by growing optimism that the conflict in the Middle East may be moving toward a diplomatic resolution.
United States crude futures for May delivery slipped 0.88 per cent to $90.40 per barrel as of 8:35 p.m. ET, while Brent crude for June delivery declined 0.31 per cent to $94.47 per barrel.
A White House official said on Tuesday that a second round of U.S.-Iran talks is under consideration, although no formal date has been scheduled, according to CNBC.
President Donald Trump later said the talks could take place “over the next two days” in Islamabad, according to the New York Post.
Trump had earlier suggested that discussions were progressing slowly and that any negotiations would likely be held in Europe, though he later called back with updated details, according to the report.
The renewed diplomatic push follows earlier reports that talks aimed at resolving the Middle East conflict could resume before the expiration of a fragile two-week ceasefire.
“Resuming flows through the Strait of Hormuz remains the single most important variable in easing the pressure on energy supplies, prices and the global economy,” the IEA said in a report published Tuesday.
The United States on Monday began enforcing a naval blockade targeting Iranian maritime traffic, sharply escalating tensions in the Gulf just hours after high-level talks between Washington and Tehran in Pakistan ended without agreement.
The move, announced by President Donald Trump, followed negotiations in Islamabad that failed to produce a breakthrough despite what participants described as rare direct engagement between both sides.
Speaking at the White House on Monday, Trump defended the blockade, saying there was currently “no fighting” and that Iran’s ability to trade had been effectively shut down.
He added that the United States would maintain the pressure, claiming Iran was “doing absolutely no business” and that the situation would be kept under control with ease.
