Oil prices dip as investors assess trajectory of US-Iran tensions

Core Viewpoint - Oil prices have decreased as investors evaluate the ongoing tensions between the U.S. and Iran, despite a recent 4% increase in prices due to concerns over potential supply disruptions [1] Oil Price Movement - Brent futures fell by 12 cents (0.2%) to $70.23 per barrel, while U.S. West Texas Intermediate (WTI) crude decreased by 8 cents (0.1%) to $65.11 per barrel [1] - Both benchmarks had previously settled over 4% higher, marking their highest settlements since January 30 [1] U.S.-Iran Tensions - Tensions between Washington and Tehran remain elevated, but the consensus is that a full-scale armed conflict is unlikely, leading to a cautious approach among investors [1] - U.S. President Donald Trump is reportedly not in favor of a significant rise in crude prices, and any military action is expected to be limited to short-term air strikes [1] Diplomatic Efforts - Progress was made in talks between the U.S. and Iran in Geneva, although significant issues remain unresolved [1] - Iran is expected to provide more details in the coming weeks regarding the negotiations [1] Military Activity - Iran has announced plans for rocket launches in southern areas, while the U.S. has deployed warships near Iran [1] - U.S. Vice President JD Vance indicated that Washington is considering whether to continue diplomatic efforts or explore alternative options [1] Inventory Reports - U.S. crude, gasoline, and distillate inventories have decreased, contrary to expectations of a rise in crude stocks by 2.1 million barrels [1] - Official U.S. oil inventory reports from the Energy Information Administration are anticipated [1]