Key Moments
- WTI trades near $90.60 per barrel in Asian hours on Tuesday after a more than 6% slide on Monday.
- U.S. forces conducted self-defense strikes in southern Iran on Monday, targeting missile sites and vessels near the Strait of Hormuz.
- Three LNG tankers and an Iraqi crude supertanker have recently transited the Strait of Hormuz en route to Asian buyers amid ongoing ceasefire talks.
WTI Rebounds After Sharp Selloff
West Texas Intermediate (WTI) crude is recovering after four consecutive sessions of declines, trading around $90.60 per barrel during Asian trading on Tuesday. The move higher comes after renewed concerns about supply following U.S. military action in southern Iran on Monday.
On Monday, WTI fell more than 6% after headlines suggesting diplomatic progress between the United States and Iran on an agreement to end their conflict and reopen the Strait of Hormuz.
U.S. Self-Defense Strikes in Southern Iran
According to Fox News, a spokesperson for U.S. Central Command said American forces carried out self-defense strikes in southern Iran on Monday. The spokesperson indicated the operations targeted missile launch sites and Iranian vessels that were attempting to deploy mines.
The U.S. military underscored that it remains focused on protecting its forces, while also stating it would continue to show restraint during the ceasefire. Iranian media reported that explosions were heard in the coastal city of Bandar Abbas and in nearby areas close to the Strait of Hormuz.
Diplomatic Signals From Washington and Tehran
The earlier sharp drop in WTI on Monday followed a Bloomberg report that U.S. President Donald Trump said negotiations for a deal with Iran to resolve the conflict and reopen the Strait of Hormuz were “proceeding nicely.” He also warned that a breakdown in talks could lead to renewed military action, even as a Pakistani mediator reportedly told China that an agreement was nearing completion.
The United States and Iran are described as working on a framework to prolong the current ceasefire by roughly two months. Under this proposed arrangement, Washington would remove its maritime blockade, and Tehran would resume normal operations through the Strait of Hormuz.
Both parties have signaled progress toward a memorandum of understanding aimed at stopping the conflict and creating a 60-day period for negotiators to finalize a comprehensive peace accord.
Strait of Hormuz Flows Show Tentative De-escalation
Reflecting these signs of de-escalation, ship-tracking data indicated that three liquefied natural gas tankers recently passed through the Strait of Hormuz, headed to Pakistan, China, and India. In addition, a supertanker carrying Iraqi crude that had been stranded for nearly three months has now departed for China.
| Vessel Type | Status / Movement | Destination(s) |
|---|---|---|
| LNG tankers (3) | Recently crossed the Strait of Hormuz | Pakistan, China, India |
| Iraqi crude supertanker | Departed after being stranded for nearly three months | China |
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