Oil eased on Tuesday, Brent crude slipping toward 94 dollars a barrel, as traders weighed mixed signals from the United States, Iran and Lebanon.
Brent traded at about 93.96 dollars by Tuesday, down roughly 1 per cent on the session, according to market data, paring sharp gains from the previous day.
Prices had spiked on Monday after Iranian media said Tehran had suspended contact with Washington over Israeli strikes in Lebanon, and reported it could move to close the Strait of Hormuz, a chokepoint for about a fifth of the world’s oil. President Donald Trump played down the rift, saying talks with Iran were still under way.
The conflicting messaging left traders unsure whether tensions were escalating or easing. Adding to the caution, the truce between Israel and Hezbollah looked shaky, with Lebanese authorities pressing for any ceasefire to cover all of the country’s territory.
Despite the dip, crude remains volatile and far above pre war levels. Brent has fallen about 18 per cent over the past month but still trades well above the roughly 69 dollars it fetched a year ago, before the conflict that began with United States and Israeli strikes on Iran on 28 February.
