WTI falls to near $70 amid conflicting US-Iran talk signals

West Texas Intermediate (WTI) crude gives up its recent gains, trading near $70.10 per barrel during Asian market hours on Tuesday. The pullback came as energy traders weighed a volatile mix of Middle East geopolitical signals and conflicting reports regarding potential US-Iran diplomacy.

According to CNBC, US President Donald Trump stated that the two nations were scheduled to hold fresh peace talks on Tuesday in Doha, Qatar, following a weekend of renewed hostilities. However, Tehran quickly contradicted the claim. Iranian officials stated that no meetings with Washington are scheduled at any level, emphasizing that Iran remains focused on implementing its existing memorandum of understanding rather than negotiating a final agreement.

Adding to the complexity, Tehran maintained its intention to oversee traffic through the strategic Strait of Hormuz, even if Oman decides not to participate in the oversight. Under the current interim agreement, Iran has agreed not to impose transit fees for 60 days, though it has floated the possibility of introducing charges afterward. The proposal to charge transit fees faces firm opposition from the US, Europe, and Gulf Arab states.

While maritime shipping through the vital waterway slowed over the weekend after clashes damaged two vessels, tanker operators and crews have so far shown a continued willingness to transit the route.