Oil Prices Tick Up as US-Iran Conflict Talks Remain Uncertain

Oil prices rose Tuesday as diplomatic efforts to end the US-Iran conflict remained uncertain. Front-month Brent futures increased by $1.04, or 1.24%, to $84.81 a barrel after dropping 7% in the previous session.

The price hike follows US President Donald Trump's claim that he was holding off on new attacks on Iran pending ongoing talks to end their war and settle claims over control of the Strait of Hormuz.

However, Iran's Foreign Ministry spokesman Esmail Baghaei rejected Trump's claim, saying no negotiations with the U.S. were taking place and no meetings were scheduled.

The market remains influenced by geopolitical headlines, with investors hesitant to fully price out the risk of renewed escalation, according to Ahmad Assiri, research strategist at Pepperstone.