Oil Prices Climb as Iran Rejects US Talks, Renewing Supply Concerns

By: Chioma Madonna Ndukwu

Oil Prices Climb as Iran Rejects US Talks, Renewing Supply Concerns

Global oil prices edged higher on Tuesday as markets reacted to fresh uncertainty over supply, following Iran’s denial of any negotiations with the United States to ease tensions in the Gulf.

The development contradicts claims by US President Donald Trump, who had earlier suggested that both sides were making progress toward a possible agreement to de-escalate hostilities.

Brent crude rose by about 4 per cent to trade above $100 per barrel, while US West Texas Intermediate also recorded similar gains.

The rebound follows a sharp drop in prices a day earlier after Washington announced a temporary pause on planned strikes targeting Iran’s energy infrastructure.

Analysts say the brief dip removed some of the “war premium” from oil prices, but uncertainty remains high as the conflict continues to threaten key supply routes.

Of particular concern is the Strait of Hormuz, a critical passage that handles a significant share of global oil and gas shipments.

Although a few tankers have continued to pass through the route, disruptions linked to the ongoing conflict have already slowed shipments, raising fears of tighter global supply.

Iranian authorities dismissed claims of any contact with Washington, describing the reports as misleading, while military officials maintained a firm stance amid ongoing strikes on energy-related facilities within the country.

Market watchers warn that prices could remain volatile in the coming weeks. Some projections suggest crude could climb further if the Strait of Hormuz remains restricted, with potential knock-on effects on inflation and global economic stability.

In response to supply risks, the US has eased certain sanctions to allow limited flows of Russian and Iranian oil already in transit, while the International Energy Agency is reportedly engaging governments on the possible release of strategic reserves if needed.

Despite the temporary pause in military escalation, traders remain cautious, with expectations that uncertainty in the region will continue to shape oil markets in the near term.

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Chioma Ndukwu

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