West Texas Intermediate traded near $69 a barrel after losing 3.2% on Monday, while Brent crude closed near $73. Israel said it’s potentially days away from a deal with the Iran-backed group, which could diminish the risk to Middle Eastern crude supply and ships traversing the region. Still, it remains unclear if Hezbollah will accept a truce.
Oil has been trading in a tight range since the middle of October, with traders weighing geopolitical risks centered around supply from Russia and Iran against expectations for a glut next year. Ahead of a meeting by OPEC+ this weekend, Iran’s representative to the producer group said the cartel has little scope to reverse output cuts due to more supplies from elsewhere.
Meanwhile, President-elect Donald Trump said the US will impose new tariffs on China, Canada and Mexico in a post on Truth Social. The announcement threatens to exacerbate tensions between the US and its key trading partners and led to a strengthening of the dollar, which may reduce the appeal of commodities.
Also Read: Dollar rises as Donald Trump threatens higher tariffs
