Oil Prices Surge Amid Ongoing US-Iran Tensions and Supply Disruptions

Oil prices rebounded on Tuesday after falling sharply in the previous session due to ongoing US-Iran tensions and concerns over supply disruptions. Brent crude rose by 1.6% to over $85 per barrel, while US West Texas Intermediate (WTI) crude gained 1.16% to over $81 per barrel.

The rebound came after US President Donald Trump said on Sunday that further military action against Iran would be delayed as diplomatic channels remained open. However, uncertainty persisted when Iranian Foreign Ministry spokesperson Esmail Baghaei rejected Trump's comments, stating that Tehran was not engaged in negotiations with Washington and no meetings had been scheduled.

The Strait of Hormuz remains at the centre of the dispute, as it handles a significant share of global oil shipments. Shipping activity in the region has been disrupted, with several Saudi-flagged supertankers changing routes to avoid the area.