Washington, April 21 (SANA) Global oil prices fell on Tuesday, reversing gains from the previous session, ahead of expected diplomatic talks between the United States and Iran.
Brent crude futures fell 1.11 percent to $94.37 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 1.14 percent to $88.59 per barrel.
The decline followed a sharp rally on Monday, when Brent rose 5.6 percent and WTI climbed 6.9 percent amid heightened geopolitical tensions. Prices had surged after Iran temporarily closed the Strait of Hormuz, a key route for global oil shipments, alongside reports of a U.S. seizure of an Iranian cargo vessel linked to sanctions enforcement.
Market focus has since shifted to the potential outcome of the talks, with investors assessing whether negotiations could lead to an extension of the current ceasefire or a broader agreement. Analysts caution that risks of renewed conflict and supply disruptions remain.
Gold prices also declined as the U.S. dollar strengthened, while traders awaited further signals on the negotiations.
Spot gold fell 0.6 percent to $4,787.52 per ounce, while U.S. gold futures for June delivery dropped about 0.4 percent to $4,808 per ounce.
Spot silver fell 0.9 percent to $78.82 per ounce.
A stronger dollar typically weighs on commodities priced in the U.S. currency by making them more expensive for holders of other currencies.
Kyle Rodda, a senior financial market analyst at Capital.com, told Reuters investors were closely watching developments.
“Investors are awaiting the next headline regarding whether the talks are going to go ahead in Islamabad and then, if they do, whether the ceasefire is extended or, even better, a peace deal is reached,” he said.
“If those things happen, gold will probably be well supported because oil prices will drop. If those things don’t come about, you might start to see some of that volatility come back into the market.”
M.F / ABD
