Oil Prices Rebound Amid Ongoing Tensions Between US and Iran

Crude oil prices rebounded on Tuesday after a sharp decline in the previous session amid ongoing tensions between the US and Iran. Brent crude futures rose by 0.7% to $84.39 per barrel, recovering from its lowest level in three weeks.

The price increase follows a statement by US President Donald Trump that he was delaying further military action against Iran while diplomatic efforts continue to resolve disputes over the Strait of Hormuz. However, Iran dismissed Trump's remarks, saying there were no ongoing negotiations with the US and no meetings had been planned.

Despite the rise in oil prices, concerns over potential supply disruptions in the Middle East persisted due to the conflict. The Strait of Hormuz remains a major sticking point, with the US maintaining that Iran must reopen the waterway under a memorandum of understanding signed in June. However, Tehran insists it has authority over the strait.

Shipping activity in the region is still disrupted, with six Saudi-flagged supertankers altering their routes and sailing towards southern Africa. Traffic through the Strait of Hormuz has also slowed due to reports of attacks on commercial vessels.