The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures narrowed on Tuesday.
WCS for June delivery in Hardisty, Alberta, settled at $16.00 a barrel, below the U.S. benchmark WTI, according to brokerage CalRock, compared to $16.25 on Monday.
* While the discount has narrowed, the price marks a steep differential for heavy Canadian crude since the start of the U.S. war on Iran.
* The WCS differential has been volatile since the start of conflict and the effective closure of the Strait of Hormuz, which has sharply reduced crude exports from the region and left energy importers scrambling for alternative supplies.
* Oil prices fell in volatile trade on Tuesday, as two vessels passed through the Strait of Hormuz and the United States said the ceasefire with Iran remained in place despite exchange of fire.
(Reporting by Siddharth Cavale in New York; Editing by Tasim Zahid)