Oil Prices Rebound Over 2% as Iran Denies Talks With U.S.

Oil Prices Recover After Sharp Selloff

By 05:30 ET (09:30 GMT) on Tuesday, Brent Oil Futures for May delivery climbed 2.5% to $102.42 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 2.8% to $90.67 per barrel. The gains followed a steep decline of more than 10% on Monday, triggered by Trump’s decision to temporarily postpone a threat to bomb Iran’s electricity grid.

Trump said he was delaying his plan to attack Iran’s energy grid by five days, attributing the move to what he described as “very good and productive” talks with unidentified Iranian officials. This narrative was challenged by Iran’s Speaker of the Parliament, Mohammad Baqer Qalibaf, who stated on social media that no such talks had taken place, adding uncertainty over the status of the war and future oil supplies from the Middle East.

Conflicting Signals and Ongoing Regional Hostilities

Reuters reported that, while no direct talks between the United States and Iran had occurred, Egypt, Pakistan, and Gulf states were acting as intermediaries, relaying messages between the two sides. Nonetheless, hostilities in the Middle East showed little sign of easing as the conflict entered its fourth consecutive week.

Several locations in Israel, including Tel Aviv, have been bombarded. The Wall Street Journal reported that Kuwait and Saudi Arabia have been targeted by drone and missile strikes, while Israel said it had struck targets linked to Iran-backed Hezbollah in Lebanon.

Oil prices have recently approached $120 per barrel as Iran effectively blocked the Strait of Hormuz, a critical shipping corridor that handles about one-fifth of global oil consumption. Before the onset of the conflict, Brent crude was trading at around $70 per barrel, underscoring the scale of the price surge amid mounting supply risks.

FAQ

Why did oil prices rise on Tuesday?
Oil prices rose after Iran denied that it had held talks with the United States, contradicting President Trump’s earlier claims and renewing uncertainty over the conflict and Middle East oil supplies.

How much did Brent and WTI futures gain?
By 05:30 ET (09:30 GMT), May Brent futures were up 2.5% at $102.42 per barrel, and U.S. WTI futures were up 2.8% at $90.67 per barrel.

What caused the previous day’s 10% drop in oil prices?
Prices fell more than 10% on Monday after Trump postponed for five days a threatened attack on Iran’s electricity grid, citing what he called “very good and productive” talks with unidentified Iranian officials.

What role does the Strait of Hormuz play in the current situation?
Iran has effectively blocked the Strait of Hormuz, a key route for about one-fifth of global oil consumption, contributing to recent price levels that have neared $120 per barrel.