Oil tankers and cargo ships remain anchored off Port Sultan Qaboos June 21, 2026 in Muscat, Oman.
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Oil prices fell on Tuesday as Iran held talks over the Strait of Hormuz with Saudi Arabia and Oman.
Brent crude futuresthe international benchmark, fell 4.8% to close at $84.09. a barrel. West Texas Intermediate United States fell 4% to $79.26 per barrel.
Iran’s top diplomat, Seyyed Abbas Araqchi, held separate calls with his Saudi and Omani counterparts, according to a Foreign Ministry statement posted on Telegram.
They discussed the need to “eliminate the insecurity imposed in the Strait of Hormuz, caused by the aggressive actions of the United States,” according to the statement.
The pause in fighting between the United States and Iran appeared to hold Tuesday, raising hopes of a de-escalation of the Middle East conflict that has upended energy supplies. Tehran has rejected reports that it has agreed to a 10-day ceasefire with the United States. a temporary pause in hostilities.
This follows reports of a decline in US munitions. President Donald Trumpwho told Axios on Friday that he was considering a “massive attack” on Iran, later shelved those plans due to concerns about weapons stockpiles, the New York Times reported.
Speaking to reporters Monday aboard Air Force One en route to Michigan, Trump dismissed suggestions that the United States was short of weapons, saying the military had “a lot” of ammunition.
The Commonwealth Bank of Australia said on Tuesday the recent drop in oil prices reflected easing concerns about an immediate escalation between the United States and Iran, but warned risks to global energy supplies remained high.
Although “a pause in hostilities between the United States and Iran appears to have weakened expectations that the conflict would escalate to include significant attacks on civilian and energy infrastructure,” the bank said in a note, warning that disagreements over the vital Strait of Hormuz shipping lane “could see hostilities resume.”
Analysts at Goldman Sachs said in a note on Tuesday that Brent crude is expected to moderate to $80 a barrel by the end of the year “if Hormuz fully reopens” by the final three months of the year.
“But disruptions in the Red Sea and attacks on Saudi oil infrastructure could pose a new source of upside risk for crude and refined product prices,” the analysts added.