Oil Prices Fall as US–Iran Tensions Ease and Dollar Strengthens

PUKMEDIA

Oil prices.

Oil prices fell for a second consecutive session on Tuesday, weighed down by hopes of a de-escalation in tensions between the United States and Iran and by a firmer US dollar, which typically dampens demand for dollar-priced commodities, traders said.

According to Reuters, Brent crude futures fell 39 cents, or 0.5%, at $65.91 per barrel at 0330 GMT. U.S. West Texas Intermediate crude was at $61.83 per barrel, down 31 cents, or 0.5%.

Prices had already dropped sharply on Monday after US President Donald Trump said Iran was “seriously talking” with Washington, signalling a reduction in geopolitical risk and easing concerns about supply disruptions from the Middle East.

Market sentiment has also been influenced by expectations that nuclear talks between the US and Iran are set to resume in Türkiye later this week, according to officials from both sides.

In addition to geopolitical factors, a stronger US dollar has placed further downside pressure on crude, as it makes oil more expensive for holders of other currencies.

Meanwhile, trade developments are also in focus. President Trump unveiled a deal with India that significantly cuts tariffs on Indian goods in exchange for commitments to halt purchases of Russian oil and lower trade barriers, a move that could shift some global crude demand dynamics.

Analysts say the market remains reactive to both diplomatic developments and broader macroeconomic trends, and that prices may continue to fluctuate as geopolitical and demand-side factors evolve.



PUKMEDIA