Oil prices declined on Tuesday amid volatile trading, as market participants assessed conflicting signals regarding potential supply disruptions in the Middle East.

WTI crude edged lower, settling near $64 per barrel and ending a two-day rally. This movement coincided with contradictory reports emerging around diplomatic negotiations between the United States and Iran. Omani Foreign Minister Badr Albusaidi stated that discussions during last week's Iran-U.S. talks were productive, causing oil prices to dip following the news. Minutes later, prices partially recovered their losses after an Axios report indicated that U.S. President Donald Trump might deploy a second aircraft carrier to the Middle East should negotiations concerning Iran's nuclear program and other issues fail.

This episode highlighted the market volatility confronting investors. Many are looking toward Wednesday's meeting between President Trump and Israeli Prime Minister Benjamin Netanyahu for clearer signals. Netanyahu is widely expected to urge the U.S. to adopt a tougher stance on Tehran's ballistic missile program.

Amid the absence of clear signals regarding the direction of Middle East conflicts, oil prices were also pressured by weakness in the stock market.

At market close: March WTI crude on the New York market fell 0.6%, settling at $63.96 per barrel. April Brent crude declined 0.4%, settling at $68.80 per barrel.