Oil Prices Rebound Amid Ongoing US-Iran Diplomatic Uncertainty

Oil prices rebounded by about 1% on Tuesday after a sharp selloff in the previous session, as concerns persisted over the security of Middle East energy supplies amid uncertainty surrounding diplomatic efforts to end the U.S.-Iran war.

The front-month Brent crude futures rose $1.12, or 1.3%, to $84.89 a barrel by 0355 GMT, recovering after a 7% decline on Monday that pushed prices to a three-week low.

U.S. West Texas Intermediate (WTI) crude gained 77 cents, or 1%, to $81.11 a barrel after falling more than 5% in the previous session to its lowest level in nearly a week.

The dispute over the Strait of Hormuz remains a key obstacle in the talks, with Iranian Foreign Ministry spokesman Esmail Baghaei rejecting U.S. President Donald Trump's assertion that negotiations are underway, saying no meetings have been scheduled.