By: Economy Middle East

Oil prices slid slightly lower during early trading on Tuesday amid prolonged uncertainty over the status of ceasefire talks between the United States and Iran and the potential reopening of the Strait of Hormuz.

Brent crude futures inched up 74 cents, or 0.78 percent, to $94.24 a barrel, while U.S. West Texas Intermediate fell 85 cents, or 0.92 percent, to $91.31 a barrel.

Both benchmarks rose more than 5 percent in the previous session but pared gains after U.S. President Trump said he had not been told that Iran was suspending talks with Washington and that Israel had agreed to pull back any troops that were preparing to attack southern Lebanon. In a separate interview with CNBC on Monday, Trump had stated he did not mind if the talks were over. Shortly after, Trump issued a social media post saying talks with Iran were continuing and told ABC News on Monday that he expects a deal to extend the ceasefire and reopen the Strait of Hormuz “over the next week.”

Regional de-escalation efforts and maritime constraints

Lebanon announced a partial ceasefire between Hezbollah and Israel on Monday, in what would amount to a limited de-escalation of a conflict that has inflamed the broader war with Iran. Iran has effectively halted nearly all non-Iranian shipping into and out of the Gulf since the war began, choking off about a fifth of global oil and liquefied natural gas flows and driving prices up by 50 percent or more.

Driven by these persistent maritime disruptions, U.S. crude exports climbed to a record 5.6 million barrels per day in May, according to ship tracking estimates released on Monday. The Middle East crisis has significantly pushed up international demand for alternative oil supplies, prompting Asian and European refiners to increase their intake of American crude grades.