
Crude oil fell to around $81 per barrel on Tuesday, touching its lowest level in more than a week, as optimism over a potential diplomatic breakthrough between the US and Iran eased concerns about supply disruptions. President Donald Trump said Washington was engaged in “good talks” with Tehran and that there was a “good chance” of reaching a resolution after pausing military strikes to give negotiations more time. He cautioned, however, that US attacks would resume if diplomacy failed, while Iran also warned it would retaliate should talks collapse. Oman has reportedly proposed a joint regional mechanism to manage shipping through the Strait of Hormuz, including a voluntary fee system. Despite the improving diplomatic outlook, geopolitical risks remain elevated. Saudi Arabia said it intercepted drones launched from Iraq targeting petroleum facilities, blaming Iran-backed groups, while Yemen’s Houthi rebels claimed responsibility for an attack on Saudi Arabia’s East-West oil pipeline.





