Oil prices were mostly steady on Tuesday as traders waited for updates from nuclear talks taking place in Geneva.
At the same time, tensions are rising in the region after Iran began new naval exercises near the Strait of Hormuz — one of the world’s most important oil routes.
Brent crude slipped slightly, down 0.2%, closing at $68.59 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) rose 84 cents to $63.73 per barrel. Trading was light because of the Presidents’ Day holiday in the United States.
The Strait of Hormuz is a key waterway. A large share of Gulf oil exports — including shipments from Iraq and Saudi Arabia — passes through it on the way to global markets. So any military activity there quickly grabs the market’s attention.
Iran’s Revolutionary Guard said it launched “smart control” exercises in the area, adding another layer of uncertainty for traders already watching the nuclear negotiations closely.
On the supply side, reports suggest that OPEC+ is preparing to gradually increase production starting in April. The move is tied to expectations of stronger oil demand during the summer.
Trading activity is also muted because major Asian markets — including China, Hong Kong, and Singapore — are closed for the Lunar New Year holiday.
For now, oil prices are stuck between rising geopolitical tension and the possibility of more supply in the months ahead.
