Oil prices retreated from 3-1/2 year highs on Tuesday as investors waited on an announcement by President Donald Trump on whether the United States will reimpose sanctions on Iran.
Should Trump pull the United States out of a multi-nation agreement on Tehran’s nuclear program, Iranian crude exports could be hit, adding to tightness in the oil market, which is coming back into balance after years of glut.
U.S. West Texas Intermediate (WTI) crude futures had dropped 78 cents, or 1.1 percent, to $69.95 a barrel by 05:50 GMT. They settled above $70 for the first time since November 2014 on Monday.
Brent crude futures were down 67 cents, or 0.9 percent, at $75.50, having jumped 1.7 percent to settle at $76.17 a barrel in the previous session.
Trump said on Monday that a decision on whether to remain in the Iran nuclear deal or to impose sanctions would be announced at 2:00 p.m. EDT (18:00 GMT) on Tuesday, four days earlier than expected.