Oil prices rose on Tuesday after falling sharply in the previous session, as conflicting signals from the U.S. and Iran on negotiations over the reopening of the Strait of Hormuz revived concerns over persistent crude supply disruptions in the Middle East.
As of 05:26 ET (09:26 GMT), Brent crude futures, the global oil benchmark, had ticked up by 2.7% to $86.05 per barrel, while U.S. West Texas Intermediate (WTI) crude futures had gained 2.3% to $82.22 per barrel. Both benchmarks declined about 5% in the previous session on hopes for fresh U.S.-Iran talks.
U.S. President Donald Trump on Monday said discussions with Iran were underway, warning that Tehran faced its "last chance" to reach a deal.
“We’re talking about the strait, the opening of the strait, having it open literally by tomorrow,” Trump told reporters in the Oval Office on Monday, referring to the Strait of Hormuz.
However, Iranian foreign ministry spokesperson Esmaeil Baqaei said the country was not currently in negotiations with the U.S. and was instead working with Oman on a route for vessel traffic through the Strait of Hormuz . The narrow waterway is vital conduit for roughly a fifth of the world’s oil and liquefied natural gas, making it a key flashpoint in the prolonged conflict between Washington and Tehran.
The conflicting statements left the status of their on-again, off-again conflict mired in uncertainty. This, in turn, dampened recent hopes for a diplomatic breakthrough, which were bolstered after Trump called off planned U.S. strikes on Iran over the weekend.
"The scale of the sell-off seems fairly overdone, given that there’s still considerable uncertainty. We’ve been in this situation multiple times before, only to see things unravel," ING analysts said in a note. "And with Iran denying that any talks are underway and Trump issuing warnings if no deal materialises, the backdrop clearly leaves ample room for a renewed escalation."
#iran #usa #oil
As of 05:26 ET (09:26 GMT), Brent crude futures, the global oil benchmark, had ticked up by 2.7% to $86.05 per barrel, while U.S. West Texas Intermediate (WTI) crude futures had gained 2.3% to $82.22 per barrel. Both benchmarks declined about 5% in the previous session on hopes for fresh U.S.-Iran talks.
U.S. President Donald Trump on Monday said discussions with Iran were underway, warning that Tehran faced its "last chance" to reach a deal.
“We’re talking about the strait, the opening of the strait, having it open literally by tomorrow,” Trump told reporters in the Oval Office on Monday, referring to the Strait of Hormuz.
However, Iranian foreign ministry spokesperson Esmaeil Baqaei said the country was not currently in negotiations with the U.S. and was instead working with Oman on a route for vessel traffic through the Strait of Hormuz . The narrow waterway is vital conduit for roughly a fifth of the world’s oil and liquefied natural gas, making it a key flashpoint in the prolonged conflict between Washington and Tehran.
The conflicting statements left the status of their on-again, off-again conflict mired in uncertainty. This, in turn, dampened recent hopes for a diplomatic breakthrough, which were bolstered after Trump called off planned U.S. strikes on Iran over the weekend.
"The scale of the sell-off seems fairly overdone, given that there’s still considerable uncertainty. We’ve been in this situation multiple times before, only to see things unravel," ING analysts said in a note. "And with Iran denying that any talks are underway and Trump issuing warnings if no deal materialises, the backdrop clearly leaves ample room for a renewed escalation."
#iran #usa #oil