WASHINGTON (dpa-AFX) - Crude oil prices have tumbled on Tuesday after an initial surge due to concerns of a prolonged Middle East crisis. Prices reversed course following reports of Qatar and Pakistan pushing for a deal between the U.S. and Iran that meets the demands of both nations.
WTI Crude Oil for November delivery was last seen trading down by $1.76 (or 1.82%) at $101.84 per barrel.
Prices of crude oil as well as gasoline and diesel have continued to increase over the past few days, with the ongoing gulf war showing no sign of a let-up.
Supply disruptions in the gulf region and from Russia have sent diesel prices to record highs in many countries, including the U.S.
In addition to the U.S.-Iran conflict that began in late February, the strikes by Iran-backed Houthi militants of Yemen targeting Saudi Arabia as well as Yemen's government security forces have compounded the concerns.
Yesterday, ship-tracking agency Kpler noted that at least 18 vessels transiting the Strait of Hormuz were attacked over the past two weeks, adding to the risk premium on crude oil.
Today, Iran's Islamic Revolutionary Guards Corps stated that two tankers caught fire after hitting mines while transiting the strait.
U.S. President Donald Trump stated that U.S. forces are ready to exit the Middle East, hinting that the U.S. objective to prevent Iran from acquiring a nuclear weapon has been achieved.
Yesterday, a spokesperson for IRGC warned that Iran will give a crushing response to any new act of war against the nation. He threatened that even a limited U.S. action will lead to a severe global energy crisis.
Qatar's Foreign Ministry Spokesperson Majed al-Ansari noted that talks between the U.S. and Iran are active.
In a significant development today, a report by Al-Araby Al-Jadeed stated that negotiators from Qatar and Pakistan have presented a compromise proposal to end the Iran war.
The report added that Iran agreed to allow a visit by the International Atomic Energy Agency to Iran's nuclear sites.
Though the U.S. nor Iran confirmed the report, the agency cited a source stating that a breakthrough to halt the escalation of the conflict between the U.S. and Iran could be announced possibly this week.
However, hours later, citing a diplomat involved in the negotiations, different news sources mentioned that even though U.S.-Iran talks are underway, reports indicating that a deal is close are wrong.
Today, while speaking at a conference in London, Executive Director of the International Energy Agency Fatih Birol stated that the agency is ready to facilitate more emergency oil releases by its member countries if the situation demanded.
Last week, the agency announced the release of over 20 million barrels of diesel to the market.
Adding to investor concerns, Birol added that 2027 could not be a year of normalization.
The U.S. is bracing for mid-term elections to be held in the first week of November.
As a result, inflationary concerns have become a talking point and pose a big challenge to Trump's administration.
Against this backdrop, with crude oil prices hovering around $100 per barrel and the national average price of gasoline soaring, analysts expect that both nations could settle for a deal.
A de-escalation between the U.S. and Iran erodes the risk premium associated with the Strait of Hormuz oil supply.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
