Oil prices fell on Tuesday, April 21, as markets prepared for U.S.-Iran peace talks. Brent crude dropped 1% during the session. The international benchmark traded near $94.50 per barrel. West Texas Intermediate (WTI) also recorded losses.
Traders are monitoring the potential for a diplomatic solution to stabilize the Strait of Hormuz. A two-week ceasefire is currently in effect. This truce is scheduled to expire on Wednesday, April 22.
U.S. Vice President JD Vance is traveling to Islamabad to meet with Iranian representatives. President Trump stated that an extension of the ceasefire is highly unlikely without a formal agreement. Analysts project oil prices could spike to $110 per barrel if negotiations collapse.