WTI Eases On Iran-US Tensions As Traders Await API Crude Inventory Report

• WTI trades around $90.15, down 0.89% on Tuesday at the time of writing.

• Iran suspends message exchanges with the US through mediators.

• Investors await the weekly API Crude Oil inventory report later in the day.

West Texas Intermediate (WTI) edges lower on Tuesday, trading around $90.15 at the time of writing, down 0.89% on the day. Traders remain cautious as negotiations aimed at reinforcing the ceasefire between the United States (US) and Iran continue to fluctuate, creating uncertainty over the global supply outlook.

According to Iran’s Tasnim news agency, Tehran’s negotiating team has halted message exchanges with Washington through mediators due to attacks in Lebanon. In response, US President Donald Trump stated that the United States would maintain its blockade on Iranian ports. However, Trump also said that an agreement to reopen the Strait of Hormuz and extend the ceasefire with Iran could be reached within the next week.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu stressed that operations against Hezbollah in southern Lebanon would continue. This situation is sustaining concerns about a broader regional escalation that could disrupt energy flows across the Middle East.

Danske Bank highlights that several members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are reportedly considering a modest increase of around 188,000 barrels per day in their July production target. According to the analysts, such a move is unlikely to have a significant impact on prices unless it translates into higher realized exports.

Market participants are now focused on the release of the American Petroleum Institute (API) weekly Crude Oil inventory report later on Tuesday.