Oil prices eased slightly on Tuesday after U.S. guidance for vessels transiting the Strait of Hormuz kept attention on tensions between Washington and Tehran.
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Oilprices eased slightly on Tuesday as traders gauged the potential for supply disruptions after U.S.guidancefor vessels transiting the Strait of Hormuz kept attention squarely on tensions between Washington and Tehran.
Brent crudeoilfutureswere down 25 cents, or 0.4%, at $68.79 a barrel by 0102 GMT. U.S. West Texas Intermediate crudefell 23 cents, or 0.4%, to $64.13.
That’s after prices rose more than 1% on Monday, when the U.S. Department of Transportation’s Maritime AdministrationadvisedU.S.-flagged commercial vessels to stay as far from Iran’s territorial waters as possible and to verbally decline Iranian forces permission to board if asked.
About a fifth of theoilconsumedglobally passes through theStrait of Hormuzbetween Oman and Iran, making any escalation in the area a major risk toglobaloilsupplies.
Iran along with fellow OPEC members Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq export most of their crude via the strait, mainly to Asia.
The guidance was issued despite Iran’stop diplomatsaying last week that Oman-mediated nuclear talks with the U.S. were off to a “good start” and set to continue.
“While talks in Oman produced a cautiously positive tone, lingering uncertainty over potential escalation, sanctions tightening, or supply disruptions in the Strait of Hormuz has kept a modest risk premium intact,” Tony Sycamore, an analyst at IG, wrote in a client note.
Meanwhile, the European Union hasproposedextending its sanctions against Russia to include ports in Georgia and Indonesia that handle Russianoil, the first time the bloc would target ports in third countries, according to a proposal document reviewed by Reuters.
The move is part of efforts to tighten sanctions on Russianoil, a key source of revenue for Moscow, over the war in Ukraine.
IndianOilCorpboughtsix million barrels of crude from West Africa and the Middle East, traders said, as the Asian country steered clear of Russianoilin New Delhi’s push for a trade deal with Washington.
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