WASHINGTON (dpa-AFX) - Adding to the losses from yesterday's session, crude oil prices have slumped on Tuesday as investors continue to monitor the efforts by regional intermediaries in the gulf to defuse Middle East tensions.
WTI Crude Oil for December delivery was last seen trading down by $1.73 (or 1.70%) at $100.03 per barrel.
Continuing to assert its authority over the Strait of Hormuz, Iran's Islamic Revolutionary Guards Corps warned that vessels violating its transit guidelines run the risk of being engulfed in flames, according to a report by Iran's Tasnim News Agency.
During a meeting with the head of Iran's Supreme National Security Council, Mohsen Rezaei, Iran's Supreme Leader Mojtaba Khamenei called for ensuring that Iran's conditions are met to end the war.
The news raised expectations that Iran could be seeking an agreement to end the U.S. naval blockade on Iran and open the Strait of Hormuz.
Data from IMF PortWatch, published on straits.live, showed that daily transits have fallen to four against the pre-war baseline of nearly 85.
On Sunday, Commander of U.S. Central Command Admiral Brad Cooper stated that U.S. forces helped Persian Gulf producers move more than 1.50 billion barrels out of the Hormuz strait since the U.S.-Iran conflict started.
According to CENTCOM, over the last six months, more than 3,000 commercial vessels successfully transited the strait with the U.S. support.
Iran has been vehemently denying the U.S. claims on shipping traffic and reasserted its full authority over the Strait of Hormuz.
Last week, the New York Times reported that the U.S. is set to restart attacks on Iran after the mid-term election in the U.S., scheduled to be held in November.
Adding to concerns, yesterday, CNN too reported that U.S. forces are getting prepared for a large-scale attack on Iran.
Qatar has been at the center of attempts to break the deadlock in U.S.-Iran negotiations. On Sunday, a delegation from Qatar visited Iran to discuss regional peace.
The same day, a spokesperson for Iran's Foreign Ministry Esmaeil Baghaei stated that messages were exchanged between the U.S. and Iran through intermediaries. Baghaei stressed that Iran has not closed the window on diplomacy.
Today, in a weekly briefing, the Director of the Foreign Ministry's Media and Communication Department of Qatar Ibrahim bin Sultan Al Hashmi confirmed hearing positive statements from the Iranian side but emphasized that still Iran needs to show goodwill.
The U.S. continues to keep alive the options for restarting military actions while extending the naval blockade on Iran.
On its part, Iran refuses to open the Strait of Hormuz until its demands are met by the U.S.
With both sides retaining substantial pressure, economists and energy experts are concerned that another attack on Iran could lead to an expansive war in the gulf.
With mid-term elections closing in, the U.S. administration is also concerned about the effect of the U.S.-Iran stalemate.
Supply disruptions have triggered inflation. According to the American Automobile Association, the U.S. national average price of gasoline is currently $4.2661 per gallon.
Despite the serious disagreements, traders are hopeful that a deal remains possible.
Aside from the U.S.-Iran war, rising attacks on critical infrastructure in Saudi Arabia by Houthi militant group is adding to Middle East tensions.
Over the past few weeks, Saudi Arabia has come under waves of strikes by Houthis.
Today, Houthis claimed targeting Saudi Arabia's biggest oil refinery, Ras Tanura, in the Eastern province with a ballistic missile, causing massive fires. The complex has a capacity of 550,000 barrels per day.
According to a report by Israel Hayom, which cited diplomatic sources in the gulf, Saudi Arabia has offered $1 billion to Iran-aligned Houthi militia in an attempt to secure a ceasefire. The report, however, did not mention that any payment has been made. Saudi Arabia is yet to comment on this.
With the U.S. Federal Reserve set to announce its interest rate decision tomorrow, the U.S. dollar index was last seen trading at 102.31, up by 0.36 (or 0.35%) today.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
