Oil Prices Rise Amid Uncertainty Over US-Iran Conflict
Oil prices rose on Tuesday as diplomatic efforts to end the US-Iran conflict remained uncertain. The Brent futures contract gained $1.04, or 1.24%, to $84.81 a barrel after dropping 7% in the previous session to a three-week low.
The US West Texas Intermediate (WTI) crude price was up 30 cents, or 0.37%, at $80.64 a barrel, recovering from a more than 5% decline in the prior session to its lowest level in nearly a week.
US President Donald Trump had announced on Sunday that he was holding off on new attacks against Iran while negotiations continued to resolve their conflict and settle claims over control of the Strait of Hormuz. However, Iran's Foreign Ministry spokesman Esmail Baghaei rejected this claim, stating that no talks with the US were taking place.
Despite the uncertainty surrounding the situation, shipping traffic at key Gulf waterways, including the Bab el-Mandeb and the Strait of Hormuz, remained largely unchanged. However, the Hormuz dispute remains a major sticking point in negotiations, with Goldman Sachs predicting that Brent prices will remain within an $80-$90 a barrel range until either a new US-Iran agreement is confirmed or there is a significant escalation in attacks.