WTI rebounds toward $91.00 as US forces conduct strikes in southern Iran

West Texas Intermediate (WTI) oil price gains ground after four days of losses, trading around $90.60 per barrel during the Asian hours on Tuesday. Crude oil prices advance on renewed supply concerns after the United States (US) forces conducted self-defense strikes in southern Iran on Monday.

Fox News reported that a US Central Command spokesperson said that US forces conducted self-defense strikes in southern Iran on Monday. The spokesperson stated that the American strikes targeted missile launch sites as well as Iranian vessels attempting to deploy mines. While the US military emphasized its commitment to protecting its forces, it also stated that it would continue to exercise restraint during the ceasefire. Iranian media reported that explosions were heard in the coastal city of Bandar Abbas and surrounding areas near the Strait of Hormuz.

WTI price declined over 6% on Monday as Bloomberg reported that the US President Donald Trump said negotiations toward a deal with Iran to end their conflict and reopen the Strait of Hormuz were "proceeding nicely.” However, President Trump cautioned that a collapse in talks could trigger fresh military attacks, even as a Pakistani mediator reportedly informed China that an agreement was close.

The United States and Iran are currently discussing a framework to extend the current ceasefire for approximately two months. Under this arrangement, Washington would lift its maritime blockade, and Tehran would reopen the Strait of Hormuz.

Both sides indicated progress on a memorandum of understanding designed to halt the conflict and provide negotiators with a 60-day window to finalize a peace deal. Reflecting this tentative de-escalation, ship-tracking data showed that three liquefied natural gas tankers recently crossed the strait bound for Pakistan, China, and India. Additionally, a supertanker carrying Iraqi crude oil departed for China after being stranded for nearly three months.