Oil prices slipped on Tuesday as markets weighed rising geopolitical risks against the likelihood of immediate supply disruption, according to reports from global analysts. Brent crude fell to $113.24 per barrel, while U.S. West Texas Intermediate dropped to $104.57, after sharp gains a day earlier.
The decline comes amid renewed tensions between the U.S. and Iran. A fragile ceasefire appears to be weakening after Iranian strikes hit the UAE and U.S. forces reportedly destroyed Iranian vessels in the Strait of Hormuz.
NEW: President Trump says Iran will be "blown off the face of the Earth" if it attacks U.S. vessels moving through the Persian Gulf and Strait of Hormuz as Project Freedom takes effect.@TreyYingst breaks down the U.S. firepower prepared for combat should Iran continue testing… pic.twitter.com/9lRwoxwSqC
— Fox News (@FoxNews) May 5, 2026
President Donald Trump warned Iran of severe consequences if American-protected shipping is targeted, as reported by Fox News. Iranian officials, however, signaled interest in continued talks.
According to ING and Goldman Sachs, markets remain cautious. While global oil inventories are still above crisis levels, regional shortages may emerge. Analysts warned that supply constraints could soon affect fuel availability, not just prices, particularly in parts of Asia and Africa.
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TIPP Staff
TIPP Staff
