Oil prices edged lower during Asian trading on Tuesday, giving back part of the previous session’s gains as investors closely monitored developments in U.S.-Iran relations. Markets also remained cautious ahead of a series of key economic data releases that could influence demand and interest rate expectations.
Crude prices had climbed more than 1% in the prior session after reports suggested the United States was adopting a more cautious stance toward Iran. That move largely offset optimism stemming from recent weekend talks between the two countries.
A weaker U.S. dollar also provided some support to commodity prices, although the greenback regained modest ground on Tuesday.
Brent crude futures for April slipped 0.1% to $68.99 per barrel, while West Texas Intermediate crude futures fell 0.2% to $64.06 per barrel by 20:52 ET (01:52 GMT).
U.S. maritime warning highlights Iran tensions
The U.S. Department of Transportation Maritime Administration issued an advisory on Monday urging U.S.-flagged vessels to keep their distance from Iranian waters when transiting the Strait of Hormuz and the Gulf of Oman.
The agency specifically recommended that ships remain closer to Oman during the passage, citing the risk of being boarded by Iranian forces.
The warning underscored ongoing tensions between the United States and Iran, even as both sides reported progress during recent talks and signaled willingness to continue negotiations over Iran’s nuclear program. However, Tehran has largely dismissed calls to halt uranium enrichment, a central point of dispute for Washington.
Key U.S. and China data in focus
Investor attention this week is firmly on economic data from the world’s largest oil consumers, as the releases are expected to influence the outlook for global energy demand.
In the United States, January nonfarm payrolls data is due on Wednesday, followed by consumer price index inflation data on Friday. These reports are also likely to shape expectations for U.S. interest rates, particularly amid uncertainty surrounding an upcoming leadership change at the Federal Reserve.
In China, consumer price index data is scheduled for release on Wednesday. The report comes just ahead of the week-long Lunar New Year holiday, during which travel activity and fuel consumption are typically expected to increase.
