Oil prices declined on Tuesday, retreating from sharp gains in the previous session as traders reassessed the risk of immediate supply disruptions amid renewed tensions between the United States and Iran.
Futures for international benchmark Brent crude fell 1.2% to $82.30 per barrel, while West Texas Intermediate (WTI) dropped 0.9% to $77.15 per barrel.
The pullback came after a volatile session on Monday, where prices surged on fears of potential attacks on shipping in the Hormuz Strait.
Traders are now weighing the likelihood of sustained supply shocks against broader macroeconomic concerns, including the Federal Reserve’s policy outlook and slowing global demand.
Analysts note that while the immediate threat to shipping routes remains elevated, the market is beginning to factor in the possibility of a temporary resolution in the coming days.
However, the broader geopolitical uncertainty continues to weigh on sentiment, with attention now turning to statements from OPEC+ members and potential U.S. military responses.