Oil prices retreated slightly in Asian trading on Tuesday, reversing some of the prior session's gains as traders monitored escalating tensions between the United States and Iran. Crude benchmarks had surged over 1% in the previous session following reports of heightened U.S. caution toward Iran, though weekend diplomatic talks had initially sparked optimism. The dollar's modest recovery also weighed on commodity prices, with Brent crude futures falling 0.1% to $68.99 a barrel and West Texas Intermediate declining 0.2% to $64.06.

U.S. maritime authorities issued a fresh advisory on Monday, warning U.S.-flagged vessels to avoid Iranian waters when transiting the Strait of Hormuz and Gulf of Oman. The Maritime Administration specifically advised ships to remain close to Oman's coast, citing risks of Iranian boarding operations. This warning reignited concerns about persistent tensions despite recent progress in weekend negotiations over Iran's nuclear program. Tehran has largely rejected demands to halt uranium enrichment, maintaining a major point of contention with Washington.

Market attention now shifts to key economic data from the world's largest oil consumers. U.S. inflation readings are due Wednesday and Friday, potentially influencing Federal Reserve policy amid leadership transition speculation. China's economic data, expected Friday ahead of Lunar New Year holidays, will be closely watched as the country's travel and fuel demand typically surges during the break. These indicators could significantly impact global oil demand forecasts.