Oil Prices Surge Over 4% as Iran Denies U.S. Talks
Oil prices jumped more than 4% during Asian trading on Tuesday after Iran rejected claims of negotiations with the United States, contradicting statements made by President Donald Trump.
Brent crude futures for May delivery rose 4.1% to $104.07 per barrel, while West Texas Intermediate (WTI) crude gained 4.2% to $91.88 per barrel.
Iran Rejects Trump’s Claims of Negotiations
The sharp rebound in oil prices followed Iran’s denial of any talks with Washington since the start of the conflict. This directly challenged earlier comments from President Trump, who had suggested that discussions with Iranian officials were underway.
On Monday, oil prices had dropped more than 10% after Trump announced a delay in planned strikes on Iran’s energy infrastructure, citing “productive” talks.
However, Iran’s Parliament Speaker, Mohammad Baqer Qalibaf, stated that no such negotiations had taken place, adding uncertainty to the geopolitical outlook.
Ongoing Conflict Keeps Markets on Edge
Although reports indicated that countries such as Egypt, Pakistan, and several Gulf states were acting as intermediaries between the U.S. and Iran, direct negotiations have not been confirmed.
At the same time, the conflict in the Middle East has entered its fourth week, with no clear signs of de-escalation. Earlier, oil prices had surged close to $120 per barrel after disruptions in the Strait of Hormuz, a critical route responsible for roughly 20% of global oil supply.
Supply Risks Increase After U.S. Refinery Incident
Adding to market concerns, a fire broke out at Valero Energy’s Port Arthur refinery in Texas, raising fears of further supply disruptions.
Reports indicated a large explosion followed by thick smoke, prompting authorities to issue a shelter-in-place order for nearby residents.
The Port Arthur facility is one of the largest refineries in the United States, with a capacity of approximately 380,000 barrels per day. The full impact on operations has not yet been confirmed.
Oil Market Outlook Remains Volatile
With geopolitical tensions persisting and supply risks rising, oil markets are expected to remain highly volatile. Investors continue to monitor both developments in the Middle East and potential disruptions in global energy infrastructure.
