Oil prices fell to a two-week low on Tuesday as prospects for increased supplies from the Gulf eased market concerns. Iran signaled it could reopen the Strait of Hormuz within seven days, while Saudi Arabia was set to raise output, according to market reports.
The potential reopening of the Strait of Hormuz, a critical chokepoint for global oil shipments, would alleviate supply fears that had supported prices in recent weeks. Saudi Arabia's plans to increase production added to the bearish sentiment.
Traders are closely monitoring developments in the Gulf region, where any disruption to supply routes can have an outsized impact on global energy markets. The prospect of higher flows from the region has pressured prices.
Analysts noted that the market remains sensitive to geopolitical tensions and supply signals. The two-week low reflects a shift in sentiment as supply concerns ease.
