Oil Prices Rebound Amid Ongoing Middle East Uncertainty

Oil prices rebounded on Tuesday after suffering their sharpest one-day decline in weeks due to uncertainty surrounding diplomatic talks between the US and Iran. The Brent price rose 1.33% to $84.88 per barrel, while WTI climbed 0.78% to $80.97.

The initial optimism over potential negotiations had briefly erased much of the geopolitical risk premium, but this was quickly reversed as Iran denied that talks with the US were underway.

This denial reinforced concerns that tensions in the Persian Gulf remain unresolved and raised doubts about whether oil shipments through the Strait of Hormuz could normalize.