RoydadNaft –  Oil prices declined on Tuesday as traders weighed the risk of supply disruptions, after fresh U.S. guidance for ships passing through the Strait of Hormuz once again drew sharp focus to tensions between Washington and Tehran.

According to Roydad Naft, Brent crude futures slipped 16 cents, or 0.23%, to $68.88 per barrel at 0800 GMT. U.S. WTI crude fell 20 cents, or 0.31%, to $64.16.

The move came after prices rose more than 1% on Monday, following an advisory from the U.S. Maritime Administration (part of the Department of Transportation) recommending that U.S.-flagged commercial vessels keep as much distance as possible from Iranian territorial waters and verbally refuse any inspection requests from Iranian forces.

Roughly one-fifth of global oil consumption flows through the Strait of Hormuz between Oman and Iran, meaning any escalation in the area would represent a major threat to worldwide oil supply.

Iran and other OPEC members—including Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq—export the bulk of their crude through this chokepoint, mostly to Asian markets.

The advisory was issued even though a senior Iranian diplomat stated last week that Oman-mediated nuclear talks with the United States had made a “good start” and would continue.

“While the Oman talks have established a cautiously positive tone, remaining uncertainty around the risk of escalation, tighter sanctions, or supply interruptions in the Strait of Hormuz continues to support a modest risk premium,” IG analyst Tony Sycamore wrote in a client note.

Meanwhile, the European Union has proposed extending its sanctions on Russia to include Georgian and Indonesian ports that handle Russian oil shipments—this would mark the first time the bloc has targeted ports in third countries, according to a document seen by Reuters.

The step forms part of broader efforts to squeeze Russian oil revenues, a critical funding source for Moscow’s war in Ukraine.

Indian oil companies have bought six million barrels of crude from West Africa and the Middle East, traders said, as the country steers clear of Russian oil in support of New Delhi’s push to finalize a trade agreement with Washington.