Brent crude oil rebounded on Tuesday, rising to around $99 per barrel, as renewed geopolitical tensions in the Middle East and ongoing diplomatic talks between Washington and Tehran kept global energy markets volatile.
The benchmark gained about 1.8% to 2% in the session, recovering some of the previous day’s losses as traders reacted to fresh US military operations in southern Iran. The strikes reportedly targeted missile launch sites and vessels suspected of laying mines, with US Central Command saying the actions were intended to protect American forces in the region.
The developments renewed concerns over potential disruptions to oil flows through the Strait of Hormuz, a critical route for global crude supplies.
At the same time, diplomatic discussions between the US and Iran continue, with negotiations reportedly centred on a framework agreement that could extend a ceasefire and ease restrictions on maritime movement in the Gulf.
US President Donald Trump said talks were progressing, though he warned that further military action could follow if negotiations collapse, adding to market uncertainty.
Despite Tuesday’s rebound, Brent crude remains down more than 10% over the past week, reflecting earlier optimism that a diplomatic breakthrough could ease supply risks.
Over a longer horizon, oil prices are still significantly higher year-on-year, but recent trading has been dominated by sharp swings driven by alternating signals of escalation and diplomacy.
Analysts say the market is currently oscillating between two forces; fears of supply disruption due to renewed conflict and expectations that a political agreement could restore stability to key shipping routes.
For now, traders remain highly sensitive to developments in the US–Iran standoff, with prices reacting sharply to each new signal from either military operations or diplomatic negotiations.
