Oil Prices Rebound as US-Iran Tensions Ease Amid Diplomatic Efforts

Oil prices rebounded after a three-day decline as tensions in the Middle East seemed to ease, with the US and Iran possibly nearing a diplomatic solution. The conflict has been ongoing for six months.

West Texas Intermediate rose above $80 a barrel, having tumbled 14% over the past three sessions. Brent closed near $84 on Tuesday.

The optimism stems from President Donald Trump's meeting with Israeli Prime Minister Benjamin Netanyahu in Washington. Israel signaled it favored pursuing talks over military action to stop Tehran developing a nuclear weapon.

However, not all parties are confident that a negotiated settlement is imminent. Traffic through the Strait of Hormuz remains constrained due to ongoing hostilities.