Oil Prices Extend Losses as Diplomatic Mediation in Tehran Eases Supply Disruption Fears

Crude oil extended losses on Tuesday as diplomatic talks in Tehran eased immediate regional conflict fears. Brent crude fell 0.6% to $115.15 per barrel, while WTI dropped 0.5% to $105.25 per barrel. The decline follows Monday's pullback, when December WTI closed down $1.51 at a 1.46% loss after trading at $102.00 per barrel. Prices had surged over 5% the previous week on Strait of Hormuz supply disruption risks. Diplomatic efforts by Qatar, Saudi Arabia, Pakistan, and Turkey to broker de-escalation with Iran pressured prices, alongside recovering Strait of Hormuz shipments reaching up to 16.7 million barrels per day.