Oil prices traded lower on Tuesday, extending their subdued trend despite continuing geopolitical uncertainty in West Asia. Brent crude was quoted at USD 72.49 per barrel, down 0.90 per cent on the day, while US benchmark WTI crude slipped 0.73 per cent to USD 70.23 per barrel.
The decline comes even as tensions surrounding the Strait of Hormuz remain in focus for energy markets. However, both benchmark contracts continue to trade comfortably below the USD 75-a-barrel mark.
Market participants are closely tracking developments involving Iran and the United States after Tehran ruled out fresh talks with Washington in the near term. Iranian authorities said no negotiations have been scheduled in the coming days and clarified that an Iranian delegation travelling to Qatar this week will not hold meetings with US officials.
The remarks added to uncertainty surrounding diplomatic efforts aimed at reducing tensions around the Strait of Hormuz, one of the world’s most important oil transit routes. Reports had earlier suggested that US and Iranian representatives could be present in Doha with mediation efforts being led by Qatar. However, Iran rejected suggestions of any direct engagement.
Despite the geopolitical backdrop, broader risk sentiment across global financial markets remained constructive. US equities ended higher, with the Nasdaq 100 rising 2.26 per cent, the Nasdaq gaining 2.07 per cent, the S&P 500 advancing 1.17 per cent, and the Dow Jones Industrial Average adding 0.59 per cent.
Investor anxiety also appeared to ease, with the CBOE Volatility Index, commonly known as Wall Street’s fear gauge, declining 4.13 per cent to 17.65. Meanwhile, the US Dollar Index edged up 0.10 per cent to 100.97, while the yield on the 10-year US Treasury note eased marginally to 4.373 per cent.
European markets were comparatively subdued. Germany’s DAX fell 0.18 per cent, France’s CAC 40 declined 0.21 per cent, and the UK’s FTSE 100 slipped 0.23 per cent.
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