Oil Extends Losses For Second Day As US-Iran Tensions Ease

(RTTNews) - Oil extended losses on Tuesday after falling more than 4 percent the previous day amid signs of de-escalation in U.S.-Iran tensions. A firmer dollar also put downward pressure on prices.

Benchmark Brent crude futures fell 1.2 percent to $65.53 a barrel while WTI crude futures were down a little over 1 percent at $61.50.

Iran and the United States are set to resume indirect nuclear negotiations on Friday in Istanbul, according to officials from both sides.

Trump has presented a stark choice regarding the OPEC member, stating that reaching a deal would be positive, but failure could lead to "bad things."

Talks with the U.S. should be pursued to secure Iran's national interests as long as "threats and unreasonable expectations" are avoided, Iranian President Masoud Pezeshkian posted on X today.

In an interview broadcast on Monday, Iran's Foreign Minister Abbas Araghchi told CNN that he believed a nuclear deal with the U.S. was achievable.

A stronger dollar also added to the pressure on oil prices after data showed U.S. factory activity grew for the first time in a year in January.

The U.S. dollar index hovered near its highest in more than a week as Trump unveiled a trade deal with India that slashes U.S. tariffs on Indian goods to 18 percent from 50 percent in exchange for India halting Russian oil purchases and lowering trade barriers.

Meanwhile, the U.S. House of Representatives is preparing for a crucial vote on a Senate compromise to end the partial government shutdown.

President Trump has implored lawmakers to quicky end the shutdown, promising to "work in good faith" on raised issues and concerns.