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Oil prices surged in Asian trading on Tuesday, rebounding strongly after the previous session’s steep losses, as Iran denied claims of negotiations with the United States and renewed concerns over supply disruptions gripped markets.
By 00:42 ET (04:42 GMT):
- Brent crude rose 4.1% to $104.07 per barrel
- WTI crude climbed 4.2% to $91.88 per barrel
Iran denial shakes market confidence
The rebound comes after a sharp drop of more than 10% on Monday, when markets initially reacted to U.S. President Donald Trump’s statement that “productive” talks with Iran had led to a temporary pause in planned strikes.
However, Iran’s Parliament Speaker, Mohammad Baqer Qalibaf, rejected those claims, stating that no such talks had taken place, casting doubt on any near-term diplomatic progress.
While reports suggest indirect communication may be ongoing through intermediaries such as Egypt, Pakistan, and Gulf states, the absence of direct negotiations has kept uncertainty elevated.
Strait of Hormuz remains central risk
The conflict, now in its fourth week, continues to disrupt global energy markets, particularly through the Strait of Hormuz:
- Accounts for roughly 20% of global oil supply
- Has been effectively blocked by Iran
- Remains the key driver behind recent price volatility
Oil prices had previously surged close to $120 per barrel amid fears of prolonged supply disruptions.
Refinery explosion adds to supply concerns
Adding to bullish pressure, a fire and explosion at Valero Energy’s Port Arthur refinery in Texas raised fresh concerns about fuel supply.
- The facility processes حوالي 380,000 barrels per day
- Authorities issued a shelter-in-place order for nearby areas
- The extent of operational disruption remains unclear
The incident further tightened an already strained supply outlook, amplifying upward pressure on crude prices.
Outlook
Oil markets remain highly sensitive to both geopolitical developments and physical supply disruptions.
Key factors to watch:
- Any confirmation (or denial) of diplomatic engagement between the U.S. and Iran
- Status of shipping through the Strait of Hormuz
- Impact of infrastructure disruptions, including refinery outages
With conflicting signals and ongoing hostilities, volatility is likely to remain elevated, with prices reacting sharply to both headlines and real supply shifts.
