Oil Prices Tick Up Amid Ongoing US-Iran Tensions
Oil prices ticked up on Tuesday after plummeting in the previous session as concerns about Middle Eastern supply remained high. Diplomatic efforts to end the US-Iran war, which has disrupted oil shipments, seem unlikely.
The front-month Brent futures rose $0.62 or 0.7% to $84.39 a barrel as of 0055 GMT after dropping 7% in the previous session to a three-week low. U.S. West Texas Intermediate (WTI) crude was $0.61, or 0.7% higher at $80.95 after falling over 5% in the previous session to its lowest in nearly a week.
US President Donald Trump said he was holding off on new attacks on Iran pending ongoing talks to end their war and settle claims over control of the key Strait of Hormuz, which connects Gulf oil producers to global markets. However, Iran's Foreign Ministry spokesman Esmail Baghaei rejected Trump's claim, saying no negotiations with the US were taking place.
Analysts at Barclays said crude oil and refined product net exports through the strait averaged 4.2 million barrels per day in the week ended July 31, compared to 3.2 million bpd the previous week.