Public Gazette
Oil prices extended their losses on Tuesday as markets balanced expectations of supply resuming via the key Strait of Hormuz with weak physical demand signals and uncertainty over a preliminary deal aimed at ending the Iran war.
By 04:36 GMT, oil prices were slightly lower, with Brent crude down 25 cents (0.3%) at $82.92 per barrel, while US West Texas Intermediate slipped 9 cents (0.1%) to $80.66 per barrel.
On Monday, oil prices dropped nearly 5%, hitting their lowest close since March 4, after US President Donald Trump announced a memorandum of understanding to end the US-Israeli conflict with Iran, though details remain unclear.
The fighting had earlier disrupted flows through the Strait of Hormuz — a key route that normally carries about one-fifth of global oil supply.
Analysts now expect supply to gradually resume through the strait, while broader weak market signals continue to pressure oil prices.
“From here, it likely takes several weeks for tanker flow to be restored,” Morgan Stanley analysts said in a client note.
“We see 50% of production back by September, and 80% by December, slightly faster than before.”
A broad range of indicators had signalled weakness in physical oil markets in recent weeks, they added.
“High US exports and low China imports are the key drivers (and) in the short term (i.e. next weeks) they do not seem to come to an end just yet.”
Oil prices continued to fall on Tuesday as traders assessed the possibility of supply returning through the Strait of Hormuz, while weak physical demand and limited clarity around a preliminary US–Iran peace deal added to uncertainty.
By 04:36 GMT, Brent crude slipped 25 cents to $82.92 a barrel, while US West Texas Intermediate edged down 9 cents to $80.66.
The decline followed a nearly 5% drop on Monday after reports of a memorandum aimed at ending the US–Israeli conflict with Iran, though key details remain undisclosed. Analysts say any reopening of the Strait of Hormuz—which previously handled about a fifth of global oil flows—could gradually restore supply, but the timeline remains uncertain and market sentiment fragile.
On Monday, a senior Iranian official said Iran would pause its nuclear activities until a final agreement is reached, including refraining from further uranium enrichment or expanding its nuclear facilities.
