US crude prices drop as traders weigh supply and diplomacy

Crude oil futures in the United States experienced a decline of more than $1 during early Asian trading on Tuesday, as market participants weighed conflicting signals regarding global supply and diplomatic efforts. West Texas Intermediate Crude Oil (WTI) was priced at $97.76 per barrel, reflecting the market's reaction to shifting geopolitical dynamics after a 1.5% gain in the previous session. The downward movement comes as traders assess heightened risks to global energy flows. Concerns have intensified following reports of a blockade targeting shipping from Iran within the Strait of Hormuz, a critical chokepoint for international oil trade. However, the impact of these supply threats was partially offset by indications of potential de-escalation. Reports surfaced that Washington and Tehran remain open to further negotiations following a recent high-level meeting in Pakistan. The discussions in Islamabad suggest that despite the current naval tensions, both nations may still seek a diplomatic resolution to their ongoing disputes.