Oil Prices Rebound Amid US-Iran Diplomatic Jitters

Oil prices rebounded on Tuesday after a sharp sell-off in the previous session, as markets weighed conflicting signals from the US and Iran over potential peace talks.

The Brent crude futures rose 1.2% to $84.79 a barrel, while US West Texas Intermediate (WTI) crude gained 0.6% to $80.80 a barrel in early trade.

US President Donald Trump said negotiations with Tehran were underway, describing them as Iran's 'last chance' to reach an agreement, but Iran swiftly rejected the claim, saying no talks were taking place and no meetings had been scheduled.

The Strait of Hormuz remains a key point of contention between Washington and Tehran, with tensions continuing to unsettle markets despite hopes of diplomacy.