Oil Rises as Markets After Iran Denies U.S. Talks

PUKMEDIA

Oil prices.

Oil prices rebounded sharply on Tuesday, driven by renewed supply concerns after Iran categorically denied engaging in talks with the United States to end the conflict in the Gulf. The statement contradicted assertions by US President Donald Trump, who had suggested a deal could be reached imminently.

According to a Reuters report, Brent crude futures rose by $4, or 4%, to $103.94 a barrel by 0400 GMT. Meanwhile, US West Texas Intermediate (WTI) climbed $3.49, also representing a 4% increase, to settle at $91.62.

The market reversal follows a significant drop on Monday, when crude futures fell by more than 10%. That decline came after President Trump ordered a five-day delay to planned attacks on Iranian infrastructure, stating that US officials had held discussions with unnamed Iranian counterparts which had yielded "major points of agreement."

The ongoing conflict has severely disrupted global energy logistics, all but halting shipments responsible for approximately one-fifth of the world's oil and liquefied natural gas supply through the Strait of Hormuz. However, data indicates that two tankers destined for India successfully navigated the strait on Monday.

Tehran swiftly rejected Washington's claims of diplomatic contact. Iranian officials dismissed the assertions as an attempt to manipulate financial markets. Concurrently, Iran's Revolutionary Guards claimed responsibility for attacks on US targets and denounced President Trump's comments as "worn-out psychological operations."

In a move to alleviate potential supply shortages, the United States has temporarily waived sanctions on Russian and Iranian oil already at sea. Industry sources report that traders have since offered Iranian crude to Indian refiners at a premium to the ICE Brent benchmark.




PUKMEDIA