Oil Prices Rebound Amid Ongoing US-Iran Conflict Uncertainty

Oil prices have rebounded slightly after plummeting by over 7% in the previous session, as concerns about Middle East supply disruptions persist. The US-Iran conflict has disrupted shipments through key waterways, and a diplomatic resolution seems unlikely.

Front-month Brent futures rose $1.12 to $84.89 a barrel, while U.S. West Texas Intermediate (WTI) crude was up 77 cents at $81.11. The prices dropped after US President Donald Trump said he was holding off on new attacks on Iran pending ongoing talks.

However, Iran's Foreign Ministry spokesman Esmail Baghaei rejected Trump's claim, saying no negotiations with the U.S. were taking place and no meetings were scheduled. Analysts at ING note that 'the scale of the sell-off seems fairly overdone,' given the uncertainty.