Oil Prices Rebound as Trump's Talks with Iran Send Mixed Signals

Oil prices rebounded more than 1% on Tuesday after plummeting in the previous session, as conflicting signals over potential US-Iran negotiations reignited concerns about Middle East tensions threatening crude supplies.

The October contract for West Texas Intermediate (WTI) futures rose 1.4% to $84.94 per barrel, while the September contract gained 1% to $81.14 per barrel.

The price hike follows a nearly 5% decline on Monday after US President Donald Trump stated that talks with Iran were underway and described them as Tehran's 'last chance' to reach a deal.

However, Iran publicly pushed back against any negotiations, citing remarks from foreign ministry spokesperson Esmaeil Baqaei, who said the country was not currently in talks with the US and was instead working with Oman on a route for vessel traffic through the Strait of Hormuz.