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Oil Markets Whipsaw on Iran Talks, U.S. Military Operations

Crude futures traded mixed Tuesday as investors navigated competing signals from U.S.-Iran negotiations and renewed military tensions in the Persian Gulf. Brent crude July futures gained 1 percent while West Texas Intermediate June contracts fell 5 percent. U.S. Central Command conducted operations in southern Iran on Monday, targeting vessels accused of deploying mines and missile launch sites. President Trump stated negotiations with Tehran were "proceeding nicely" but warned military action could resume if talks collapse. The mixed messaging left traders uncertain about reopening the Strait of Hormuz. UBS identified severe market strain, with global inventories falling 246 million barrels in March and April alone. The bank expects cumulative production losses could surpass 1 billion barrels by May's end, leaving the market "strongly undersupplied."