Oil benchmarks fell to their lowest levels in more than a week after three days without direct U.S.-Iran attacks, while industry estimates showed that crude and product exports through Hormuz remained depressed. Reuters reported that Brent crude futures traded at $87.82 a barrel early Tuesday, down 0.6 percent, while U.S. West Texas Intermediate traded at $81.95, down 0.8 percent.
Both benchmarks briefly fell about one percent and reached their lowest levels in more than a week as traders responded to the pause in direct U.S.-Iran attacks and statements about possible negotiations. Barclays estimated that net exports of crude oil and refined products through the Strait of Hormuz averaged 2.9 million barrels a day in the week ending July 24, compared with 5.9 million barrels a day the previous week.
Market analysts cited by Reuters said traffic had also dropped in the Red Sea as Houthi forces threatened Saudi shipping and attacked infrastructure connected to the kingdom's export system. The price move followed a larger decline from wartime highs, but supply risks remained because there was no published agreement governing passage through Hormuz and no end to attacks by regional armed groups.
A Reuters poll indicated that U.S. crude and gasoline inventories likely fell in the latest reporting week while distillate inventories likely rose; the official government inventory release had not yet been published.
Futures prices incorporate expectations about later delivery and can change before physical tanker traffic, insurance terms or refinery schedules return to normal. The Strait of Hormuz carries oil and liquefied natural gas from several Gulf exporters, while the East-West Pipeline and Red Sea terminals provide only partial alternatives to that route.
Demand conditions, especially in Asia, were also cited as limiting prices, so the Tuesday decline cannot be attributed solely to the diplomatic reports. As of the edition cutoff, Early-session prices were volatile, and the export estimates did not establish how quickly normal traffic or insurance coverage could return. The next scheduled factual records include daily vessel counts and maritime security notices for Hormuz and the Red Sea and official inventory data and any published shipping arrangement.