Investing.com - Oil prices gave back some recent gains on Tuesday as the U.K. struck a conciliatory tone in its dispute with Iran, while markets prepped for the release of U.S. crude inventories.

New York-traded West Texas Intermediate crude futures fell 24 cents, or 0.4%, to $55.98 a barrel by 7:52 AM ET (11:52 GMT), while Brent crude futures, the benchmark for oil prices outside the U.S., lost 35 cents, or 0.6%, to $62.91.

Geopolitical risk premiums have risen since a British-flagged tanker was seized by Iran in the straits of Hormuz, a bottleneck through which one-fifth of world oil supply passes.

Tensions eased a little on Monday after U.S. Secretary of State Mike Pompeo indicated the U.S. wouldn't respond to the incident, saying it was the U.K.'s responsibility to protect its own ships. The U.K. government responded by calling on other European states to put together a naval force capable of protecting vulnerable shipping.

Iran's move appeared a retaliation to the British seizure of a tanker carrying Iranian oil to Syria earlier this month on the orders of outgoing Prime Minister Theresa May.

Foreign Minister Javad Zarif tweeted Tuesday that "The May govt's seizure of Iranian oil at behest of US is piracy, pure & simple."

He nonetheless dangled an olive branch in front of her successor, saying: "I congratulate my former counterpart, @BorisJohnson on becoming UK PM. Iran does not seek confrontation. But we have 1500 miles of Persian Gulf coastline.These are our waters & we will protect them."

“As such, traders quickly write off any aggressive posturing on both sides of the conflict as more bark than bite,” Stephen Innes, managing partner of Vanguard Markets, said.

With fears of a more serious dispute temporarily placed on hold, market focus will shift to U.S. crude inventories.

Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (20:30GMT). Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock draw of around 3.12 million barrels.

The EIA report also provides a reading of U.S. output, a key factor for monitoring supply.

“While oil prices remain supported by Middle East geopolitical risk; the market's reaction has been muted due to the ascendency of U.S. shale production, which is tempering supply risk premiums despite the geopolitical risk thermometer hitting warning level,” Innes said.

In other energy trading, gasoline futures advanced 0.3% to $1.8325 a gallon by 7:55 AM ET (11:55 GMT), while heating oil fell 0.3% to $1.8942 a gallon.

Lastly, natural gas futures dipped 0.1% to $2.309 per million British thermal unit.

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