Oil prices moved higher during Asian trading on Tuesday after four consecutive sessions of losses.
Investors focused on the possibility of renewed U.S.-Iran talks during the United Nations General Assembly this week, while developments around Saudi oil flows also remained in focus.
As of 02:02 ET, or 06:02 GMT, Brent crude futures for November rose 1.5% to $101.82 per barrel.
West Texas Intermediate crude futures for October also gained 1.5%, reaching $97.22 per barrel.
Oil Rebounds After Sharp Losses
The rebound followed a weak session on Monday.
Brent crude settled 3.4% lower, while October WTI dropped 4.5%.
Both benchmarks recorded their lowest closing levels since September 9.
The recent decline reflected easing concerns over immediate supply disruptions and growing hopes that diplomatic efforts could reduce tensions in the Middle East.
U.S.-Iran Talks Raise Hopes for De-Escalation
U.S. President Donald Trump has said he would be open to meeting Iranian President Masoud Pezeshkian.
Pezeshkian is expected to attend the U.N. General Assembly in New York.
Iran has also reportedly communicated conditions for restarting negotiations through intermediaries.
These developments have raised hopes that diplomacy could help reduce tensions and lower the risk of further disruption to regional energy supplies.
Saudi Oil Flows Through Hormuz Increase
Supply concerns have also eased after reports that Saudi Arabia increased crude shipments through the Strait of Hormuz.
The rise in exports follows disruptions affecting the country’s East-West pipeline.
According to satellite data cited by Reuters, Saudi oil flows through the Strait of Hormuz averaged around 2.9 million barrels per day over the past six days.
That represents a sharp increase compared with August levels.
Higher shipments have helped ease some concerns over the availability of crude supplies.
Middle East Supply Risks Remain
Despite the improvement in oil flows, the market remains exposed to renewed disruptions.
Yemen’s Iran-aligned Houthi movement has continued attacks on Saudi targets.
At the same time, Saudi Arabia has faced limitations on some export routes.
Britain has agreed to provide limited military support to Saudi Arabia as Riyadh responds to attacks from Houthi forces in Yemen.
These developments continue to add geopolitical risk to the oil market.
U.S. Proposes $5 Billion Energy Reconstruction Fund
The Trump administration has also proposed investing $5 billion in a new fund aimed at rebuilding damaged energy infrastructure across the Middle East, according to the Wall Street Journal.
The initiative would also seek to reduce regional dependence on the Strait of Hormuz.
The waterway remains one of the world’s most important routes for crude oil exports, making any disruption there highly significant for global energy markets.
Trump-Xi Meeting Also in Focus
Investors are also watching a planned meeting between President Trump and Chinese President Xi Jinping later this week.
Trade relations and wider geopolitical issues are expected to feature on the agenda.
China is the world’s largest oil importer, which makes its economic outlook an important driver of global crude demand.
Any improvement in U.S.-China trade relations could therefore influence expectations for oil consumption and broader market sentiment.
For now, oil prices are being driven by a combination of diplomatic developments, Saudi supply flows and broader geopolitical risks across the Middle East.
