Oil prices tick lower as markets watch U.S.–Iran tensions.

Oil prices edged lower in Asian trade on Tuesday, giving back some of the previous session’s gains as markets focused on U.S.–Iran tensions and awaited key economic data. Crude had jumped more than 1% earlier after reports suggested Washington was taking a more cautious stance toward Iran, offsetting optimism from weekend talks.

A weaker dollar had supported prices, though the greenback stabilized on Tuesday. Brent futures slipped 0.1% to $68.99 a barrel, while WTI fell 0.2% to $64.06.

The United States has released a maritime advisory concerning Iran.

On Monday, the U.S. Maritime Administration warned U.S.-flagged ships to keep as much distance as possible from Iranian waters while transiting the Strait of Hormuz and the Gulf of Oman, advising vessels to remain closer to Oman due to the risk of boarding by Iranian forces.

The advisory underscored ongoing tensions between Washington and Tehran, despite recent diplomatic talks showing some progress and commitments to further negotiations on Iran’s nuclear program, which remain strained as Iran has largely dismissed calls to halt nuclear enrichment.

Markets are awaiting upcoming economic data releases from the United States and China.

This week’s focus is on economic data from the world’s largest oil consumers, which is expected to shape demand expectations. In the U.S., January nonfarm payrolls are due on Wednesday, followed by consumer price index inflation data on Friday, with both releases likely to influence interest-rate outlooks amid an upcoming leadership transition at the Federal Reserve. In China, CPI data is also scheduled for Friday, just ahead of the week-long Lunar New Year holiday, when travel activity and fuel demand are expected to increase.

Sources: Ambar Warrick