Oil resumes gains amid uncertainty over US-Iran talks

Oil prices rose during Tuesday's trading as uncertainty persisted over the prospects for a diplomatic resolution to the conflict between the United States and Iran, while disruptions to oil flows through some of the world's most critical shipping routes continued.

In trading, front-month Brent crude futures gained $2.27, or 2.71%, to $86.04 a barrel by 09:44 GMT, after plunging about 7% in the previous session to their lowest level in three weeks.

US West Texas Intermediate (WTI) crude rose $1.72, or 2.14%, to $82.06 a barrel after falling more than 5% in the previous session to its lowest level in about a week.

Conflicting signals

The rebound followed a sharp selloff triggered by US President Donald Trump's announcement on Sunday that he had postponed new military strikes against Iran while awaiting the outcome of talks aimed at ending the conflict and resolving disputes over control of the Strait of Hormuz.

However, Iranian Foreign Ministry spokesperson Esmaeil Baghaei rejected Trump's claims on Monday, saying there were no negotiations with the United States and no meetings scheduled between the two sides.

The status of the Strait of Hormuz remains one of the main sticking points in the ongoing dispute. Before the conflict erupted in late February, roughly 20% of global oil and liquefied natural gas supplies passed through the strategic waterway each day.

The Strait of Hormuz also remains a high-risk area for shipping. On Tuesday, the UK Maritime Trade Operations (UKMTO) reported an incident about 20 nautical miles (37 kilometers) northeast of Khasab, Oman, after a commercial vessel reported being struck by an unidentified projectile.

In the Red Sea, shipping data showed that six Saudi-flagged very large crude carriers recently rerouted through the Gulf of Aden toward South Africa, while two tankers carrying Saudi crude successfully transited the Bab el-Mandeb Strait.