Oil rises slightly amid ongoing uncertainty over US-Iran talks
Oil prices rose slightly on Tuesday after a sharp decline in the previous session, amid concerns that Middle East supplies remain under threat, as a diplomatic resolution to the war between the United States and Iran app
Translated by Qiyas from الراي — Original source
Oil prices rose slightly on Tuesday after a sharp decline in the previous session, amid concerns that Middle East supplies remain under threat, as a diplomatic resolution to the war between the United States and Iran appears unlikely.
Brent crude futures for the nearest delivery month rose $0.62, or 0.7 percent, to $84.39 per barrel by 00:55 GMT, after falling 7 percent in the previous session to record their lowest level in three weeks.
U.S. West Texas Intermediate crude rose $0.61, or 0.7 percent, to $80.95, after dropping more than 5 percent in the previous session to its lowest level in nearly two weeks.
Prices fell after U.S. President Donald Trump announced on Sunday that he would postpone new attacks on Iran until ongoing talks aimed at ending the war between the two countries and resolving disputes over control of the strategic Strait of Hormuz are concluded.
This waterway links Gulf oil producers to global markets, and before the conflict erupted, energy exports passing through it daily accounted for approximately 20 percent of total global consumption.
However, Iranian Foreign Ministry spokesperson Esmaeil Baqaei denied on Monday what Trump had said, stating that there are currently no negotiations with the United States and that no date has been set for any meetings.
Tim Waterer, chief market analyst at KCM Trade, said, “Pressure on oil prices has eased somewhat. While Trump has halted attacks on Iran and promoted a return to negotiations, the downward trend remains fragile; oil could easily rebound to higher levels if missiles start flying again or if oil tankers around the Strait of Hormuz come under fire once more.”
The Strait of Hormuz remains a key point of contention. Washington says that the memorandum of understanding agreed upon in June required Iran to open the waterway, while Tehran argues that the text explicitly retained control over it.
Analysts at Barclays Bank said that average net exports of crude oil and refined products through the strait for the week ending July 31 reached 4.2 million barrels per day, compared with 3.2 million barrels per day in the previous week.
