Oil pauses rally as WTI falls under $83 amid diplomatic optimism

Crude oil prices edged lower on Tuesday, with WTI futures slipping below $83 per barrel as optimism over a possible resumption of US-Iran peace talks prompted investors to lock in gains after a strong rally. Despite the pullback, oil has surged nearly $15 so far this month, supported by persistent geopolitical tensions and concerns over potential disruptions to global energy supplies. On the domestic front, MCX August crude oil futures declined nearly 0.5% to Rs 7,916 per barrel. Market sentiment remains cautious as tensions in the Middle East continue to simmer, with developments surrounding the Red Sea and the Strait of Hormuz remaining key drivers. Meanwhile, investors are also awaiting next week's Federal Reserve policy meeting, where interest rates are widely expected to remain unchanged.

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