Oil Prices Drop 2% as US-Iran Talks Enter Critical Phase

International oil benchmark Brent crude futures declined as much as 1.31 per cent to $94.22 per barrel, hitting an intraday low.

Meanwhile, US West Texas Intermediate (WTI) traded at $85.5, down 2.19 per cent from the previous close.

However, both crude benchmarks had rallied strongly on Monday, with Brent rising 5.6 per cent and WTI surging 6.9 per cent after Iran again shut the Strait of Hormuz.

On the domestic front, crude oil on the Multi Commodity Exchange (MCX) was trading 1.75 per cent lower at Rs 8,040, an intraday low.

Meanwhile, the United States had seized an Iranian cargo vessel as part of its blockade of Iranian ports.

However, Iran's top negotiator and Parliament Speaker Mohammad Baqer Qalibaf reportedly reiterated that Tehran would not engage in talks under pressure.

On Monday, shipping activity through the Strait of Hormuz -- which handles about one-fifth of global oil supply -- remained constrained.

In addition, US President Donald Trump said he believed a nuclear deal currently being negotiated with Iran would be better than the 2015 international agreement aimed at curbing Tehran's nuclear programme.

"The deal that we are making with Iran will be far better than the JCPOA, commonly referred to as 'the Iran nuclear deal'," Trump said on his social media platform Truth Social.

On the equities front, domestic benchmarks Sensex and Nifty traded higher, with the indices rising nearly 1 per cent and the 30-share Sensex reclaiming the 79,000 level in early trade.

In global markets, Wall Street ended marginally lower, while Asian shares traded on mixed note.

- IANS