Oil Prices Rebound on Ongoing Iran-US Tensions

Oil prices rebounded slightly on Tuesday after a sharp decline in the previous session, driven by concerns that Middle East supply remains at risk due to ongoing tensions between the US and Iran.

The front-month Brent futures rose $1.12, or 1.3 per cent, to $84.89 a barrel, while U.S. West Texas Intermediate (WTI) crude was up 77 cents, or 1 per cent, at $81.11.

The price drop followed US President Donald Trump's statement on Sunday that he was holding off on new attacks on Iran pending ongoing talks to end their war and settle claims over control of the key Strait of Hormuz.

However, Iranian Foreign Ministry spokesman Esmail Baghaei rejected Trump's claim, stating that no negotiations with the US were taking place and no meetings were scheduled.