Oil prices rebounded on Tuesday as the largest global crude supply disruption remained in place and Iran denied engaging in negotiations with the United States, contradicting statements suggesting a potential near-term resolution to the conflict. Brent crude settled at $104.49 per barrel, up $4.55 or 4.55%, while U.S. West Texas Intermediate (WTI) crude settled at $92.35 per barrel, rising $4.22 or 4.79%.
Market participants remain focused on the persistence of disruptions and the increasing likelihood that short-term shipping outages could evolve into longer-term supply deficits. Energy market expectations have shifted accordingly, with forecasts moving away from surplus conditions toward potential shortages.
Geopolitical signals remain mixed. While diplomatic efforts continue to be discussed, including potential third-party mediation, Iran has denied any active negotiations and appears to be maintaining a firm stance. The divergence between official statements has contributed to heightened uncertainty and volatility in crude markets.
Ongoing attacks on regional energy infrastructure have further reinforced supply concerns, with reported damage to gas facilities and pipeline systems within Iran.