Brent Crude Oil Rebounds Above $101 Amid US-Iran Diplomatic Hopes

The price of Brent crude oil rebounded above $101 per barrel on Tuesday as traders responded to shifting attention towards possible diplomatic engagement between the United States and Iran, along with continuing disruptions in Middle East oil supplies.

Brent crude gained 1.29 percent to $101.63 per barrel during trading, reversing part of Monday's decline when it fell below $100.

The recovery follows a sharp retreat that pushed Brent to a 12-day low on Monday as expectations of possible diplomatic progress reduced some of the geopolitical premium accumulated in oil prices.

The physical oil market continues to show signs of strain, with supply concerns emerging in Libya and Saudi Aramco increasing crude shipments through the Strait of Hormuz after attacks on the kingdom's East-West Pipeline disrupted some exports.