WTI Crude Settles at $82.36 as US-Iran Diplomacy Signals Ease Supply Fears

U.S. crude oil futures fell sharply on Tuesday, with October WTI settling at $82.36 per barrel, down $2.65 or 3.12%, extending Monday's losses to reach one-week lows. The selloff was triggered by reports that the U.S. would return diplomats to the Middle East, a signal of easing hostilities with Iran that reduced geopolitical risk premiums in the market. October RBOB gasoline also declined, falling 0.0183 to trade down 0.62%, while diesel futures edged only slightly lower.

WTI Midland physical crude faced additional pressure as Chevron lowered its offer price. Energy stocks broadly fell Tuesday afternoon in tandem with the commodity. Analysts noted that thinner markets amplified the move, with oil absorbing the brunt of the selling pressure while diesel proved more resilient.