Oil Prices Bounce Back Amid Ongoing US-Iran Conflict Uncertainty
Oil prices rebounded by 1% on Tuesday after plummeting in the previous session due to concerns over continued risks to Middle East supply. The diplomatic efforts to end the US-Iran war, which has disrupted oil shipments, remain uncertain.
The front-month Brent futures rose $1.02, or 1.2%, to $84.79 a barrel by 0632 GMT after dropping 7% in the previous session to a three-week low. U.S. West Texas Intermediate (WTI) crude was up 46 cents, or 0.6%, at $80.80 a barrel after falling more than 5% in the previous session to its lowest in nearly a week.
Analysts say that despite some stabilization, the scale of the sell-off seems 'fairly overdone' due to ongoing uncertainty surrounding the conflict. Iran's Foreign Ministry spokesman Esmail Baghaei rejected US President Donald Trump's claim of ongoing talks, stating no negotiations are underway and no meetings are scheduled.
The Hormuz dispute remains a central sticking-point in talks between the two nations. Washington claims that the memorandum of understanding agreed upon in June required Iran to open the waterway, while Tehran asserts that the text explicitly preserved its authority.