Oil Prices Rise as US-Iran Peace Talks Remain Uncertain

Oil prices rose on Tuesday as uncertainty surrounding US-Iran peace talks persisted. Front-month Brent futures LCOc1 increased by $1.04, or 1.24%, to $84.81 a barrel by 0800 GMT after dropping 7% in the previous session to a three-week low.

US West Texas Intermediate (WTI) crude CLc1 was up 30 cents, or 0.37%, at $80.64 a barrel after falling more than 5% in the previous session to its lowest in nearly a week. The price drop came after US President Donald Trump said he was holding off on new attacks on Iran pending ongoing talks.

However, Iran's Foreign Ministry spokesman Esmail Baghaei rejected Trump's claim, saying no negotiations with the US were taking place and no meetings were scheduled. This marginal gain in prices suggests that investors remain reluctant to fully price out the risk of renewed escalation.