At the time of writing, West Texas Intermediate (WTI) rose to $91.54, up 3.87%, while Brent crude climbed 3.43% to $103.40 per barrel.
The rebound follows a steep selloff on Monday, when Brent briefly dropped below $100 per barrel for the first time since March 11. The decline came after US President Donald Trump stated that Washington had held “productive” discussions with Iran and would delay planned strikes on Iranian energy infrastructure.
Markets initially interpreted those remarks as a sign of possible de-escalation, with expectations that tensions could ease. However, Iran quickly denied any direct negotiations with the United States, calling such claims inaccurate and misleading.
While some reports suggested that mediation efforts may have involved regional countries such as Pakistan, Egypt, and Turkey, Iranian officials firmly rejected the idea of direct talks. This denial shifted market sentiment back toward supply concerns, driving prices higher.
Broader financial markets reacted differently. Asian equities moved higher, tracking gains on Wall Street, where investor sentiment improved on hopes of reduced geopolitical tension. However, oil markets remained focused on underlying supply risks rather than short-term optimism.
With the conflict now entering its fourth week, disruptions to oil flows across the Middle East continue to impact global supply. Production cuts and damage to key energy infrastructure have tightened availability, keeping upward pressure on prices.
According to estimates, at least 40 major energy facilities across the region have been significantly damaged, reinforcing concerns that supply constraints could persist even if tensions begin to ease.
Overall, the market remains highly sensitive to geopolitical developments, with oil prices expected to stay volatile as traders balance diplomatic signals against ongoing supply disruptions.
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