Oil extends losses as hopes of easing West Asia tensions grow

• Brent fell 1.33 per cent to $91.33 a barrel, while US WTI dropped 1.5 per cent to $85.54

• Reports that Trump would pause further strikes on Iran eased supply concerns, although the Strait of Hormuz blockade remained in place

• Investors awaited major oil market reports and US inflation figures for further direction

Global oil prices fell more than 1 per cent on Tuesday, extending the previous session’s sharp decline as reports that US President Donald Trump would hold off on further military strikes against Iran eased fears of prolonged disruption to West Asia energy supplies.

Brent crude futures dropped $1.24, or 1.33 per cent, to $91.33 a barrel. US West Texas Intermediate crude futures lost $1.31, or 1.5 per cent, to $85.54 a barrel.

The latest fall followed a 5.85 per cent decline in Brent during the previous session, when the benchmark touched its lowest level since 31 August.

According to reports, Trump said he planned to pause additional strikes following appeals from countries in the region, including Qatar. His remarks came after a meeting with Qatar’s prime minister at the White House.

However, he indicated that the naval blockade in the Strait of Hormuz would continue for now, leaving uncertainty over shipments through a crucial global energy route.

Market experts said signs of possible diplomatic progress were weighing on crude prices, although geopolitical risks and concerns about shipping security could restrain further falls.

The prospects for a settlement remained unclear. Reports cited senior US and Gulf officials expressing doubts about an imminent agreement between Washington and Tehran.

Iran’s security council chief, Mohsen Rezaei, meanwhile rejected reports of negotiations, describing accounts of talks as fabricated.

Investors were also awaiting monthly reports from the US Energy Information Administration, the Organisation of the Petroleum Exporting Countries and the International Energy Agency to assess the outlook for oil production and consumption.

Separately, Russian and Ukrainian officials were scheduled to begin two days of US-brokered talks on Tuesday, their first such meeting since February.

Gold prices also edged lower, trading near $4,120 an ounce as investors awaited a key US inflation release for indications of the Federal Reserve’s next monetary policy steps.

With IANS inputs