WTI Crude Futures Dip Near Four-Week Low

WTI crude futures dipped on Tuesday, approaching a four-week low after Iran decided against escalating tensions with Israel. Investors now assess the risk of a full-scale conflict between the two nations as low, refocusing on the fundamentals of supply and demand.

In response to Tehran's recent missile and drone attacks on Israel, EU foreign ministers consented on Monday to widen sanctions against Iran. These expanded measures are part of a broader response to Iran's aggression.

In the US, the Senate is set to deliberate on a foreign aid package that proposes sanctions targeting Iran's oil exports. These sanctions would affect entities involved with shipping, ports, and refineries that process Iranian oil, aiming to curb Iran's oil trade.

Additionally, a forthcoming industry report is expected to show a 1.8 million barrel increase in US crude oil inventories for the last week, which would mark the third consecutive week of inventory growth. This follows a significant increase of 4.090 million barrels in the prior week.