Oil prices extended their decline on Tuesday, with both major benchmarks losing more than a dollar per barrel as markets priced in the possibility of a diplomatic resolution to the US-Iran conflict that has disrupted global energy flows.
Brent crude futures fell $1.47, or 1.66%, to $86.89 per barrel by 03:26 GMT, touching their lowest level since 20 July. US West Texas Intermediate dropped $1.45, or 1.76%, to $81.16 per barrel, also the weakest since that date.
The moves follow an already steep session, in which both contracts shed roughly 8% after Washington abruptly suspended its airstrike campaign against Iran earlier in the week.
President Donald Trump said on Monday that the United States was engaged in “good talks” with Iran and that a resolution remained possible. He added, however, that strikes would resume if negotiations failed. Iranian officials issued parallel statements indicating they were prepared to retaliate if hostilities restarted.
