Oil Prices Surge as US-Iran Talks Remain Uncertain

Oil prices rose more than 2% on Tuesday as uncertainty surrounding talks to end the US-Iran conflict persisted.

Front-month Brent futures increased by $2.27, or 2.71%, to $86.04 a barrel after dropping 7% in the previous session to a three-week low.

The price increase was partly due to disruptions to oil flows through key shipping routes, including the Strait of Hormuz, which remains a central sticking point in talks between the US and Iran.

Gulf shipping traffic remained largely unchanged at the start of the week, with the UK Maritime Trade Operations agency reporting an incident involving a cargo vessel 37 km north-east of Oman's Al Khasab after it was hit by an unknown projectile.