US-Iran Diplomatic Tensions Lift Oil Prices Amid Ongoing Supply Concerns

Oil prices saw a slight increase on Tuesday, their first rise in five sessions. The uptick came as investors awaited developments on potential US-Iran talks during the United Nations General Assembly in New York.

Brent crude futures for November delivery rose $1.72, or 1.7%, to $102.06 a barrel by 0617 GMT. US West Texas Intermediate (WTI) crude for October delivery gained $1.62, or 1.7%, to $97.40 a barrel.

However, analysts described the increase as largely a short-covering rebound rather than a major shift in the market outlook. Tim Waterer, chief market analyst at KCM Trade, noted that crude prices could remain within a range and react sharply to developments in diplomatic efforts between Washington and Tehran.

Regional security risks persist, with Yemen's Iran-backed Houthis reporting attacks targeting Saudi Arabia. Supply concerns have eased slightly due to increased shipments through the Strait of Hormuz and Saudi Arabia's efforts to restore its East-West pipeline.