Crude oil futures slipped Tuesday morning as markets digested mixed signals from Middle East diplomatic efforts. WTI crude dropped 0.3% to $103.81 per barrel while Brent crude fell 0.5% to $110.75, reflecting cautious trading sentiment amid ongoing uncertainty.

Iran's negotiating stance with the U.S. remains largely unchanged from previous rounds that failed to produce breakthrough agreements, according to regional mediators and U.S. officials familiar with the discussions. The stalemate keeps markets on edge about potential supply disruptions.

NATO is reportedly considering measures to assist commercial shipping through the Strait of Hormuz if the critical waterway remains closed beyond early July. This contingency planning adds another layer of geopolitical risk that traders are factoring into their positions.

The price retreat suggests investors are taking profits after recent gains driven by supply concerns. With negotiations stalled and military preparedness increasing, markets will likely remain volatile until there's clearer resolution on Iran's nuclear program and regional security arrangements.