Oil prices edged lower during Tuesday's Asian trade as investors assessed the risk of supply disruptions stemming from heightened United States-Iran tensions, following fresh maritime guidance related to the Strait of Hormuz.
By 3:15 pm AEDT (4:15 am GMT), Brent crude futures were down 12 cents, or 0.2%, at US$68.92 per barrel. U.S. West Texas Intermediate crude slipped 14 cents, or 0.2%, to $64.22 per barrel.
The modest pullback followed gains of more than 1% in the previous session. On Monday, the U.S. Department of Transportation’s Maritime Administration advised U.S.-flagged commercial vessels to keep as far away as possible from Iranian territorial waters when transiting the Strait of Hormuz.
The agency also instructed vessels to verbally decline permission to board if approached by Iranian forces.
The warning kept market attention firmly on the strategic waterway, through which roughly 20% of global oil consumption passes. The Strait of Hormuz, located between Oman and Iran, remains a critical artery for global energy flows, and any escalation in the region is widely seen as a significant risk to supply.
Iran, along with fellow OPEC producers Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, exports the majority of its crude through the strait, with much of the output destined for Asian markets.
The maritime guidance came despite signs of diplomatic engagement. Iran’s top diplomat said last week that Oman-mediated nuclear talks with the United States were off to a "good start" and expected to continue, offering a potential avenue for easing tensions.
In a separate development, the European Union has proposed expanding its sanctions regime against Russia to include ports in Georgia and Indonesia that handle Russian oil shipments. According to a proposal document reviewed by Reuters, the move would mark the first time the bloc has targeted ports in third countries as part of its efforts to curb Moscow’s oil revenues.
The proposal forms part of broader measures aimed at tightening restrictions on Russian energy exports, a key funding source for the Kremlin amid the ongoing war in Ukraine.
