An aerial view of the Chevron EL Segundo Refinery, one of the largest petroleum processing facilities in California, as a plane takes off from LAX on April 8, 2026, as seen over Manhattan Beach, California.
Mario Tama | getty images
Oil prices fell sharply on Tuesday amid growing hopes of a diplomatic solution to the Middle East conflict.
U.S. crude oil futures for May delivery fell 0.88% to $90.4 a barrel by 8:35 p.m. ET. Brent futures for June delivery fell 0.31% to $94.47 a barrel.
A White House official told CNBC on Tuesday that a second round of US-Iran talks is being considered, though no official schedule has been set.
According to the New York Post, President Donald Trump later said that talks could take place in Islamabad “in the next two days”.
Oil prices year by year
The report said Trump had previously indicated that discussions were progressing slowly and that talks would likely take place in Europe, but quickly backed down with updated details.
The renewed pressure for talks comes after earlier reports that talks aimed at resolving the Middle East conflict could resume before the end of a fragile two-week ceasefire.
“Resuming flows through the Strait of Hormuz remains the most important variable to ease pressure on energy supplies, prices and the global economy,” the IEA said in a report published Tuesday.
Flows through the strait are constrained, running at about 10% of normal levels, or about 2.1 million barrels a day on a four-day moving average, Goldman Sachs said in a note published Wednesday.
The US blockade targeting Iranian ports could put further pressure on remaining flows, with Washington reporting that many ships have turned back in the first 24 hours, while transit through non-Iranian ports continues.
Goldman said the disruption to crude oil production in the Middle East appears to be less severe than initially feared. It estimates the average shut-in in the Persian Gulf in March will be about 8 million barrels per day, lower than earlier expectations and the International Energy Agency’s estimate of 10 million barrels per day, partly due to higher use of oil held in storage and on tankers.
