Oil Prices Rebound Amid US-Iran Conflict Concerns

Oil prices rebounded slightly on Tuesday after falling in the previous session due to ongoing concerns about Middle Eastern supply risks.

The U.S.-Iran conflict remains uncertain, with diplomatic signals mixed. U.S. President Donald Trump said he was holding off on new attacks on Iran pending talks to end their war and settle claims over control of the Strait of Hormuz.

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.

Front-month Brent futures rose $0.62, or 0.7%, to $84.39 a barrel as of 0055 GMT after dropping 7% in the previous session to a three-week low. U.S. West Texas Intermediate (WTI) crude was $0.61, or 0.7% higher at $80.95 after falling over 5% in the previous session to its lowest in nearly a week.

Analysts say the Strait of Hormuz remains a central point of contention, with Washington saying the memorandum of understanding agreed in June required Iran to open the waterway, while Tehran argues the text explicitly preserved its authority.