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Oil Prices Bounce Back as US-Iran Tensions Persist

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Oil prices rose on Tuesday as tensions between the US and Iran remained uncertain.

The front-month Brent futures price increased by $1.04, or 1.24 percent, to $84.81 a barrel by 0800 GMT after dropping 7 percent in the previous session to a three-week low.

US West Texas Intermediate (WTI) crude was up 30 cents, or 0.37 percent, at $80.64 a barrel after falling more than 5 percent in the previous session to its lowest in nearly a week.

The price increase suggests that investors remain wary of renewed escalation between the two countries, with Ahmad Assiri, research strategist at Pepperstone, stating 'The subsequent marginal gain in prices suggests that investors remain reluctant to fully price out the risk of renewed escalation leaving the market front and centre influenced by geopolitical headlines.'

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