Oil prices eased for a second straight day on Tuesday as traders weighed easing U.S.–Iran tensions. A stronger dollar also added pressure on crude. Brent crude fell 39 cents, or 0.5%, to $65.91 per barrel. U.S. West Texas Intermediate slipped 31 cents, or 0.5%, to $61.83 per barrel. Market moves reflected sentiment more than supply or demand changes.
Officials from Iran and the United States said nuclear talks could resume on Friday in Turkey. Meanwhile, former President Trump warned that deploying U.S. warships near Iran could spark conflict if negotiations fail. These comments kept traders cautious. Analysts noted that last week’s rally lost momentum quickly, and broader risk asset volatility also pressured crude.
The dollar strengthened further, putting additional pressure on crude. Rising greenbacks make dollar-priced oil more expensive for foreign buyers. Analysts also pointed to Trump’s nomination of Kevin Warsh as Federal Reserve chair, which boosted the dollar and dragged crude lower.
Trade developments added uncertainty. Trump announced a deal with India cutting U.S. tariffs in exchange for India reducing Russian oil purchases and lowering trade barriers. Analysts warned the deal could increase Russian oil supply at sea, weighing on prices. Trump also said India agreed to buy more U.S. oil and might purchase from Venezuela, reshaping global crude flows.
Looking ahead, analysts expect volatility to continue. Oil prices eased again as geopolitical hopes met economic uncertainty. Traders should expect a range-bound market with downside risks until the next major catalyst emerges.
