Global oil prices declined by more than 1% as Iran reviewed a proposed agreement with the United States aimed at extending the ceasefire and reopening the Strait of Hormuz.
Global oil prices fell by more than one percent on Tuesday as investors reacted to reports that Iran is reviewing a proposed agreement with the United States aimed at reducing tensions between the two countries.
The decline came after Iranian media reported that Tehran was considering a temporary deal related to the ongoing conflict and the reopening of the Strait of Hormuz, one of the world’s most important oil shipping routes.
U.S. President Donald Trump said negotiations with Iran were continuing and expressed optimism that an agreement could soon be reached to extend the ceasefire and restore normal shipping activity in the region.
According to reports, Iran has not yet officially responded to the latest draft of the proposed agreement, and discussions between the two sides are still ongoing.
In the global energy market, Brent crude prices dropped by more than one percent, while U.S. West Texas Intermediate crude also recorded similar losses during trading on Tuesday.
Despite the latest decline, oil prices had surged sharply during the previous trading session due to concerns over regional instability and potential disruptions to energy supplies.
Market analysts say investors are closely monitoring developments surrounding the negotiations, as any progress toward easing tensions could improve confidence in global oil supply stability.
The Strait of Hormuz remains a critical route for international oil transportation, and uncertainty in the region continues to influence energy prices worldwide.
