Oil Prices See Modest Rebound Amid Ongoing Tensions

Oil prices saw a modest recovery on Tuesday after suffering losses due to ongoing US-Iran tensions. The price of Brent crude rose by $0.62 to $84.39 per barrel, while US WTI increased by $0.61 to $80.95, both climbing around 0.7% from the previous session.

The concerns surrounding oil prices stem from the Strait of Hormuz, a critical waterway that handles about 20% of global oil shipments. The US has called on Iran to ensure safe passage through the strait, but Iran has disagreed, leading to increased tensions and impacting oil shipping costs.

Some Saudi tankers are now taking longer routes around Africa, which is contributing to higher costs and delays in oil transportation. This factor is preventing oil prices from fully rebounding yet.