Oil markets eased in Asian hours on Tuesday, giving back part of the gains recorded in the previous session as traders focused on the possibility of renewed tensions between the United States and Iran and on a slate of important economic releases due later in the week.
Market participants had pushed prices higher in the prior session, with crude jumping by more than 1% after reports indicated the U.S. was taking a more cautious stance toward Iran. Those developments largely offset positive signals from talks held between the two countries over the weekend.
A softer dollar earlier in trading lent some support to commodity prices, although the greenback recovered slightly on Tuesday. By 20:52 ET (01:52 GMT), Brent futures for April were down 0.1% at $68.99 a barrel, while West Texas Intermediate futures were 0.2% lower at $64.06 a barrel.
U.S. maritime advisory raises concerns
On Monday, the U.S. Department of Transportation’s Maritime Administration issued guidance for U.S.-flagged vessels transiting the Strait of Hormuz and the Gulf of Oman, advising them to keep as much distance as possible from Iranian territory. The agency recommended that U.S.-flagged ships remain close to Oman during the crossing, citing risks of being boarded by Iranian forces.
The advisory heightened worries that tensions between Washington and Tehran could persist despite reports that the two countries had made progress in weekend discussions and intended to continue talks on Iran’s nuclear program. At the same time, Iran largely rejected calls to halt its nuclear enrichment, a central point of disagreement with the United States.
Economic data in focus
Investors are also watching key economic readings from the world’s largest oil consumers, which are expected to influence demand expectations. In the United States, the nonfarm payrolls report for January is due on Wednesday, and consumer price index data are scheduled for Friday. These prints are anticipated to inform the outlook for U.S. interest rates, a consideration that has gained attention amid a looming leadership change at the Federal Reserve.
China, the world’s largest oil importer, will publish its consumer price index on Friday, just before the start of the week-long Lunar New Year holiday. Analysts and market participants expect travel and fuel consumption in China to rise during the holiday period, which could affect short-term demand.
Overall, the market remains sensitive to both geopolitical signals and near-term demand indicators, with traders balancing recent gains against a return to caution as fresh information emerges.