Aerial view of the Chevron El Segundo Refinery, one of California’s largest oil processing facilities, as seen from above Manhattan Beach, California, April 8, 2026.
Tama Mario | Getty Images
Oil prices fell on Tuesday as traders weighed the U.S. blockade of Iranian ships and signs that the U.S. and Iran could continue peace talks.
U.S. crude oil futures for May delivery fell more than 2.24% to $96.85 per barrel as of 12:20 a.m. Eastern time. The international benchmark Brent for June delivery fell 1.46% to $97.91 a barrel.
U.S. Vice President J.D. Vance said Monday that the next steps in U.S.-Iranian peace efforts depend on the Iranian government after returning from weekend talks that failed to produce a breakthrough.
“I really think the ball is in Iran’s court, whether we have further talks or whether we end up reaching an agreement, because we have a lot of things on the table,” Vance said in an interview on Fox News.
He also noted that the deal could benefit both sides, especially if the U.S. conditions are met regarding Iran’s nuclear program.
Crude oil prices since the beginning of the year
This comes after the US began a “blockade” of Iranian ports in the Persian Gulf on Monday. President Donald Trump on Sunday said the United States would close the strait, marking a sharp escalation in tensions after a two-week ceasefire.
U.S. Central Command later announced that the measure would only apply to ships entering or leaving Iranian ports and coastal zones.
Commonwealth Bank of Australia’s Vivek Dar said the blockage was “directly jeopardizing” Iran’s oil exports through the Strait of Hormuz, which reached about 1.7 million barrels a day last month.
“The blockage will therefore further tighten the market for physical oil and refined products,” he said.
