Oil Prices Rise as Iran Denies Talks with the U.S.
Oil prices moved higher in European trading on Tuesday, gaining more than 2% after Iran denied that any negotiations with the United States had taken place since the start of the war. The statement directly contradicted claims by President Donald Trump, adding to market uncertainty.
Brent and WTI Extend Gains
Brent crude futures for May delivery, the global benchmark, increased by 2.7% to $102.62 per barrel by 10:07 ET. Meanwhile, U.S. West Texas Intermediate (WTI) crude rose even more sharply, climbing 3.8% to $91.51 per barrel.
Markets Rebound After Sharp Sell-Off
The latest gains follow a significant drop in oil prices on Monday, when crude fell more than 10%. The decline came after Trump announced a temporary delay in planned strikes on Iran’s power infrastructure, citing what he described as “productive” discussions with Iranian officials.
Trump stated that the attack would be postponed for five days. However, Iran’s parliament speaker, Mohammad Baqer Qalibaf, rejected the claim, stating that no such talks had occurred. This conflicting information has left markets uncertain about the future of the conflict and its impact on global oil supply.
Diplomatic Signals Mixed as Tensions Persist
Reports indicate that while direct negotiations between the U.S. and Iran have not taken place, intermediary countries such as Egypt, Pakistan, and several Gulf states are facilitating communication between the two sides. Iran’s foreign ministry has also hinted at efforts to ease tensions.
Despite these developments, the conflict continues to escalate, now entering its fourth week, with no clear signs of de-escalation.
Middle East Conflict Intensifies
Ongoing hostilities have led to multiple attacks across the region. Several areas in Israel, including Tel Aviv, have been targeted, while drone and missile strikes have reportedly hit Kuwait and Saudi Arabia.
At the same time, Israel has carried out strikes against Iran-linked Hezbollah positions in Lebanon, further increasing regional instability.
Strait of Hormuz Disruption Drives Oil Higher
Oil prices have surged in recent weeks, at one point approaching $120 per barrel, largely due to disruptions in the Strait of Hormuz. This critical shipping route handles approximately 20% of global oil supply.
Before the conflict began, Brent crude was trading near $70 per barrel, highlighting the scale of the recent price increase.
Outlook: Oil Likely to Stay Elevated
Market analysts expect oil prices to remain elevated as long as uncertainty surrounding supply disruptions persists.
According to industry experts, ongoing risks to global energy flows will continue to support higher crude prices compared to pre-conflict levels.
