Oil Edges Lower as Markets Weigh U.S.–Iran Talks and a Stronger Dollar

Oil prices slipped modestly in subdued holiday trading on Tuesday, as investors kept a close watch on upcoming negotiations between the United States and Iran, alongside pressure from a firmer U.S. dollar.

Brent crude futures for April delivery declined 0.3% to $68.45 a barrel, while West Texas Intermediate (WTI) crude futures rose 1.1% to $63.45 a barrel by 21:00 ET (02:00 GMT). The divergence in WTI prices was largely attributed to thin liquidity following a U.S. market holiday on Monday.

Trading activity across global energy markets remained muted, with major Asian financial centers—including China, Hong Kong, Taiwan, South Korea, and Singapore—closed for holidays, significantly reducing volumes.

Meanwhile, a strengthening dollar weighed on crude prices ahead of a busy week of economic data releases and signals from the Federal Reserve, which are expected to provide further direction for currency and commodity markets.

U.S.–Iran Talks Take Center Stage

Market attention is firmly focused on renewed diplomatic efforts between Washington and Tehran. U.S. and Iranian officials are scheduled to meet in Geneva on Tuesday to discuss Iran’s nuclear enrichment program, according to media reports.

U.S. President Donald Trump said on Monday that he would be “indirectly involved” in the discussions, though details of his role remain unclear. The talks follow earlier negotiations this month that ended without a clear breakthrough.

Geopolitical tensions remain elevated. Reports indicate that the United States has deployed a second aircraft carrier to the Middle East ahead of the Geneva meeting, alongside contingency plans for a prolonged military campaign should diplomatic efforts fail.

These developments have kept a geopolitical risk premium embedded in oil prices, as any escalation in Middle East tensions could threaten supply stability in one of the world’s most critical energy-producing regions.