Oil Prices Rebound as US-Iran Conflict Continues

Global oil prices rebounded modestly on Tuesday after a steep decline in the previous session, driven by concerns over ongoing tensions between the US and Iran. The conflict has raised fears that Middle Eastern supply routes remain vulnerable to disruption.

The Brent crude futures price increased by $0.62, or 0.7%, to settle at $84.39 per barrel, while US West Texas Intermediate (WTI) crude futures gained $0.61, or 0.7%, to reach $80.95 per barrel.

Analysts note that the recovery is fragile and subject to reversal if military strikes resume or tankers in the Strait of Hormuz are targeted again. According to Tim Waterer, chief market analyst at KCM Trade, 'oil could just as easily rebound higher if missiles start flying again or if tankers around the Strait of Hormuz come under fire once more.'

The diplomatic impasse between Washington and Tehran has created uncertainty surrounding the resolution of the conflict and the security of global energy supplies. Iran's Foreign Ministry spokesperson Esmail Baghaei rejected US President Donald Trump's claim that bilateral talks were underway, stating that no negotiations with Washington were taking place.