Oil prices moved lower on Tuesday as investors assessed renewed diplomatic efforts aimed at securing a ceasefire between the United States and Iran, while continuing to monitor geopolitical tensions that could threaten global crude supplies.
Brent crude fell 0.52% to $88.76 a barrel, while U.S. WTI declined 0.50% to $82.81 a barrel. Natural gas, meanwhile, edged up 0.03%.
The decline in oil prices comes as reports suggest mediators have proposed a 10-day ceasefire between Washington and Tehran in an effort to preserve the interim agreement reached on June 17 and pave the way for broader negotiations to end the conflict that began on February 28.
Despite Tuesday's pullback, the geopolitical outlook remains highly uncertain. Yemen's Iran-backed Houthis have threatened to impose a naval blockade on Saudi Arabia, a move that could open a new front in the regional conflict and increase risks to global energy supplies and international trade routes.
Oil prices had rallied sharply during Monday's session after U.S. President Donald Trump blamed Tehran for the deaths of three American service members, fueling concerns over a further escalation of the conflict.
However, renewed hopes for diplomacy prompted some profit-taking, pushing crude prices below the more than one-month highs reached in the previous session.
Market participants continue to balance the risk of supply disruptions against the possibility of diplomatic progress, with both factors expected to remain the main drivers of energy markets in the coming days.