Oil Prices Rebound Slightly Amid Ongoing US-Iran Tensions

Oil prices rebounded slightly on Tuesday after plummeting in the previous session due to concerns over Middle Eastern supply disruptions. Front-month Brent futures rose $0.62, or 0.7%, to $84.39 a barrel as of 0055 GMT, while US West Texas Intermediate (WTI) crude was $0.61, or 0.7% higher at $80.95.

The price drop followed US President Donald Trump's announcement that he was holding off on new attacks on Iran pending ongoing talks to end their war and settle claims over control of the Strait of Hormuz. However, Iran's Foreign Ministry spokesman Esmail Baghaei rejected Trump's claim, saying no negotiations with the US were taking place.

Analysts at Barclays noted that crude oil and refined product net exports through the strait averaged 4.2 million barrels per day in the week ended July 31, compared to 3.2 million bpd the previous week.

Tim Waterer, chief market analyst at KCM Trade, cautioned that while some of the sting had been taken out of oil prices with Trump's announcement, the move lower remains fragile and could easily rebound higher if missiles start flying again or tankers around the Strait of Hormuz come under fire once more.