Oil prices ease on geopolitical uncertainty, weak China demand signals

Oil prices fell on Tuesday due to uncertainty in U.S.-Iran negotiations and Russia-Ukraine peace talks, while new government data delivered a cautious outlook for top crude-importer China's economy.

Brent futures were down 42 cents, or 0.6%, to $65.12 a barrel at 11:02 a.m. EDT (1502 GMT), while U.S. West Texas Intermediate (WTI) crude slid 26 cents, or 0.4%, to $62.43.

Iran was the third-biggest crude producer in the Organization of the Petroleum Exporting Countries (OPEC) group in 2024 behind Saudi Arabia and Iraq, according to U.S. federal energy data.

A deal between Iran and the U.S. would allow Iran to raise oil exports by 300,000 to 400,000 barrels per day if sanctions were eased, StoneX analyst Alex Hodes said.

The European Union and Britain announced new sanctions against Russia without waiting for the U.S. to join them, a day after U.S. President Donald Trump spoke to Russian President Vladimir Putin without winning a promise for a ceasefire in Ukraine.