Crude oil prices lingered close to three-month lows on Tuesday as traders positioned for potential supply increases. Market participants expect a US-Iran agreement to reopen the Strait of Hormuz, a critical waterway for global energy shipments. The anticipation has kept pressure on prices despite recent volatility in the energy sector.

The Strait of Hormuz serves as the world's primary oil transit chokepoint, handling roughly one-third of all seaborne petroleum trade. Any disruption there reverberates through global markets. Iran's partial closure of the strait in recent months had already tightened supply concerns, contributing to elevated price levels before this recent pullback.

Energy traders now factor in the likelihood that renewed Iranian exports could flood an already oversupplied market. The prospect of additional barrels hitting the market has reinforced selling pressure across futures contracts. Analysts note that the market is pricing in the potential for renewed Iranian production sooner rather than later.

With prices testing multi-month lows, the focus shifts to whether OPEC+ members will respond to offset any additional Iranian supply. The situation highlights how geopolitical developments continue shaping short-term trading strategies in energy markets.