Oil Prices Bounce Back Amid Ongoing Hormuz Tensions

Oil prices rebounded slightly on Tuesday after slumping to their lowest level in three weeks. The recovery came despite ongoing tensions over the Strait of Hormuz, a crucial waterway for Gulf oil exports. According to market analysts, risks to energy supplies remain, even with US President Donald Trump pausing military action against Iran.

The rebound followed Monday's 7% slide, which saw benchmark prices drop to their lowest level in three weeks. WTI crude advanced $0.41, or 0.51%, to $80.75 a barrel, while Brent crude climbed $0.49, or 0.58%, to $84.26 a barrel.

The tensions over the Strait of Hormuz remain a key point of contention between Iran and the US. The US maintains that a memorandum of understanding agreed in June committed Iran to reopening the passage, while Tehran argues the text explicitly safeguarded its authority over the strait.