Oil Steadies After Biggest Quarterly Drop Since Pandemic

Oil prices steadied on Tuesday after posting the largest quarterly decline since the COVID-19 pandemic, as market participants focused on diplomatic developments between the United States and Iran and the gradual return of shipping traffic through the Strait of Hormuz.

Brent crude and West Texas Intermediate both stabilized after a volatile quarter marked by concerns over global demand and geopolitical tensions. The recent drop has been driven by expectations of increased supply from Iran if sanctions are lifted as part of a potential peace deal, as well as a broader risk-off sentiment in financial markets. The resumption of flows through the Strait of Hormuz, a critical chokepoint for about 20% of the world's oil, has further eased supply fears. For fuel traders, the stabilization offers a temporary reprieve, but the outlook remains uncertain as the market digests the implications of a possible return of Iranian barrels. NowPrice's real-time fuel quotes show the latest prices for Brent and WTI, helping traders track the evolving situation.

Looking ahead, traders will monitor the progress of US-Iran negotiations and any signals from OPEC+ regarding production levels. Key data releases, including weekly US inventory reports from the Energy Information Administration, will provide further clues on demand trends. The market is also watching for any shifts in risk appetite that could drive the next leg of price action.