WTI slumps below $73.00 as traders continue to watch US-Iran peace talks

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $72.75 during the early European trading hours on Tuesday. The WTI price falls to the lowest level since early March as traders continue to watch US-Iran moves. Traders brace for the American Petroleum Institute (API) weekly crude oil report, which is due later on Tuesday. 

US Vice President JD Vance said on Monday that Iran would allow nuclear inspectors to return to the country after what he called  “great progress” on the first day of US-Iran negotiations in Switzerland.

Nonetheless, Iran’s Foreign Minister Abbas Araghchi said earlier that real negotiations on the "nuclear issue" haven't started yet. Washington will mediate another round of talks beginning Tuesday to end clashes in southern Lebanon between Iran-backed Hezbollah and Israel, according to a US State Department official.

Traders will closely monitor further progress in negotiations aimed at securing a lasting peace agreement between the US and Iran. Easing geopolitical tensions and a temporary US license for Iranian oil sales supported expectations of a gradual recovery in the Gulf supply flows, which weigh on the WTI price. 

Also, the American Petroleum Institute (API) weekly crude oil report is due later on Tuesday. A larger-than-expected crude oil inventory draw indicates stronger demand and could lift the WTI price, while a bigger build than estimated signals weaker demand or excess supply, which might undermine the WTI price.