Oil prices moved higher on Tuesday as investors reassessed supply risks following Iran’s denial that it had engaged in talks with the United States to end the Gulf conflict, contradicting statements by U.S. President Donald Trump that an agreement could be reached soon.
Crude futures had tumbled by more than 10% on Monday after Trump ordered a five-day pause in planned attacks on Iran’s power infrastructure, saying the United States had held discussions with unnamed Iranian officials that had produced “major points of agreement”.
By 08:58 GMT, Brent crude futures were up $1.25, or 1.3%, at $101.19 per barrel. U.S. West Texas Intermediate (WTI) rose $2.15, or 2.4%, to $90.28.
The ongoing war has effectively halted shipments passing through the Strait of Hormuz, the strategic waterway south of Iran that carries roughly one-fifth of global oil and liquefied natural gas flows. The International Energy Agency has described the disruption as the largest oil supply shock ever recorded.
“Today’s moderate bounce is just the market finding its footing in the mud,” said Tim Waterer, chief market analyst at KCM Trade. “Traders are aware that while the missiles are on hold, the Strait of Hormuz is still far from a clear waterway.”
On Tuesday, Iran launched multiple waves of missiles toward Israel. Officials in Tehran rejected Trump’s claims of negotiations, dismissing them as ’fake news.’
“The Iran conflict sees tentative de-escalation, but unresolved risks remain around Hormuz,” BCA Research said in a report. “Given continued attack risks and headline volatility, it remains too early to position aggressively for lower oil prices.”
Macquarie warned that if the Strait of Hormuz remains effectively closed through the end of April, Brent prices could climb to $150 per barrel — exceeding the previous record high of $147 reached in 2008.
Meanwhile, new attacks on regional energy infrastructure were reported. Iran’s Fars news agency said a gas company office and a pressure-reduction facility were struck in the city of Isfahan, while a projectile also hit a gas pipeline supplying a power station in Khorramshahr.
Leave a Reply