The price of the main United States oil benchmark, West Texas Intermediate (WTI), fell by more than five per cent on Tuesday despite fresh American military strikes on Iran.
WTI crude dropped 5.46 per cent to $91.33 per barrel around 0030 GMT, while North Sea Brent crude gained 1.6 per cent to trade at $97.68 per barrel.
The decline followed sharp losses recorded on Monday, when oil prices slipped below the $100 mark amid growing optimism that the United States and Iran may be moving closer to an agreement that could lead to the reopening of the Strait of Hormuz.
Investors have increasingly focused on prospects of easing tensions in the Middle East after reports suggested negotiations between Washington and Tehran were making progress.
However, the fragile ceasefire in the region faced new pressure after US Central Command announced that American forces carried out fresh attacks on missile sites in southern Iran and targeted boats allegedly attempting to lay mines.
The strikes came as senior Iranian negotiators arrived in Doha for talks aimed at ending the conflict.
Market analysts said traders appeared more influenced by expectations of improved oil flows through the Strait of Hormuz than by the latest military escalation, contributing to the continued decline in crude prices.
The Strait of Hormuz remains one of the world’s most critical energy routes, handling a significant portion of global oil and liquefied natural gas shipments.
