Crude oil prices today extended losses as Brent slipped below $90 on US-Iran Talks | Commodity Markets Today

Crude oil prices remained under pressure on Tuesday after the United States and Iran continued diplomatic engagement following a pause in military strikes, easing concerns over supply disruptions from the Middle East.

Brent crude traded below $87 a barrel, while US West Texas Intermediate (WTI) hovered around $80.60 after both benchmarks posted their sharpest one-day declines in months during the previous session. The sell-off followed signs that tensions between Washington and Tehran may be easing, reducing fears of a prolonged disruption to global crude supplies.

Why Crude Oil Prices Are Falling?

According to Kotak Neo Commodity Research, oil prices tumbled after the United States and Iran stepped back from military confrontation over the weekend, prompting traders to unwind the geopolitical premium that had supported prices during weeks of conflict. Brent settled at $88.4 a barrel, down nearly 9%, while WTI closed at $82.6, down around 7%, marking the steepest one-day decline in several months.

Selling pressure continued into Tuesday as the ceasefire held for a second consecutive night. US President Donald Trump confirmed that Washington and Tehran were engaged in talks aimed at ending the broader conflict, adding to hopes that geopolitical risks could ease further. The report noted that the market quickly shifted its focus from supply disruptions to the possibility of improving stability in the region.

Although Yemen's Houthi rebels reportedly targeted Saudi oil infrastructure along the Red Sea, traders viewed the incident as less disruptive than any threat to crude shipments through the Strait of Hormuz, one of the world's most critical oil transit routes. As a result, markets continued to pare the risk premium that had driven oil prices sharply higher earlier this month.

Fed Policy Decision in Focus for Oil Markets

With geopolitical concerns taking a back seat, investor attention has turned to the US Federal Reserve's policy meeting scheduled later this week.

Markets broadly expect the Fed to keep interest rates unchanged, but commentary from Fed Chair Kevin Warsh will be closely watched for clues on the future policy path. Investors are also awaiting a series of economic releases, including US consumer confidence, second-quarter GDP, Core PCE inflation and weekly jobless claims, which could influence expectations for fuel demand and the broader commodity outlook.

Copper Holds Firm Despite Weakness in Oil Prices

Unlike crude oil, base metals traded mixed. According to Kotak Neo Commodity Research, copper extended last week's gains as easing geopolitical tensions improved risk appetite across industrial commodities. The report added that falling inventories on the Shanghai Futures Exchange, higher Chinese import premiums and ongoing supply constraints continued to support copper prices, although a stronger US dollar and the Fed meeting could cap further gains.

Technical Levels to Watch

According to Kotak Neo Commodity Research, MCX Crude Oil (August) is expected to trade with a sideways-to-bearish bias in the ₹7,545-₹8,130 range, while MCX Copper (August) is likely to remain sideways between ₹1,319.50 and ₹1,346.10. Immediate support for MCX Crude Oil August is placed at ₹7,660, followed by ₹7,561 and ₹7,237, while resistance is seen at ₹7,984, ₹8,083 and ₹8,407. For MCX Copper August, support is placed at ₹1,325, while resistance is seen at ₹1,337, ₹1,341 and ₹1,353.

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