Brent crude futures dropped to around $106 per barrel on Tuesday, reversing earlier gains after reports suggested that President Donald Trump is willing to end U.S. military operations against Iran, even if the Strait of Hormuz remains largely closed. The move could potentially strengthen Tehran’s control over the strategic shipping route.

The geopolitical environment remains tense:

• Iran struck a Kuwaiti oil tanker near a Dubai port, highlighting risks to Persian Gulf shipping.
• Iran-backed Houthis in Yemen targeted Israel over the weekend.
• Tehran is reportedly preparing to disrupt Red Sea shipping, threatening two major energy and trade corridors.

Despite the dip, Brent crude is still on track for a record monthly surge exceeding 60%, reflecting ongoing supply concerns and heightened geopolitical risks in the region.