Oil prices showed slight recovery in Asian trade on Tuesday, rebounding from the previous session’s losses. The price stabilization came as tensions between the U.S. and Iran eased, reducing the risk premium on oil. April crude futures rose 0.2% to $66.42 a barrel, while West Texas Intermediate crude futures climbed 0.3% to $61.90 a barrel.

The price decline was also influenced by a stronger U.S. dollar, which gained sharply after President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair. Warsh is seen as a less dovish pick, potentially limiting the Fed’s asset buying operations and keeping monetary policy tighter than markets had hoped. This dollar strength weighed on commodity prices, including precious metals like gold and silver, which experienced significant drops.

The upcoming nuclear talks between the U.S. and Iran in Turkey this Friday are expected to further cool tensions. These talks come after repeated warnings from Trump and the deployment of U.S. warships to the Middle East, which had previously boosted oil prices due to fears of a regional conflict. However, the outcome of these talks remains uncertain, as previous negotiations have yielded limited results.

Investors are also closely watching a potential trade deal between the U.S. and India, which would see India begin buying oil from the U.S. and potentially Venezuela, while ceasing imports from Russia. This shift could further pressure Russia to end its war with Ukraine, a development that would have wide-reaching implications for global oil markets.