Global oil prices edged higher in early trading on Tuesday as supply concerns resurfaced after Iran denied holding talks with the United States (US), contradicting claims by Donald Trump that negotiations were underway to ease tensions in the Gulf.
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Brent crude futures rose $1.06, or 1.1%, to $101 per barrel, while US West Texas Intermediate climbed $1.58, or 1.8%, to $89.71. The gains followed a sharp drop of more than 10% on Monday, triggered by Trump’s announcement that he would delay potential strikes on Iranian power plants by five days and pursue dialogue.
Oil rises as markets assess supply risks after Iran denies US talks https://t.co/9QZr6LZAzz https://t.co/9QZr6LZAzz
— Reuters (@Reuters) March 24, 2026
Market analysts said the pause in military escalation temporarily reduced the “war premium” embedded in oil prices. However, uncertainty persists due to ongoing tensions and disruptions in key energy routes.
At the centre of the crisis is the Strait of Hormuz, a vital passage for global oil and liquefied natural gas shipments. The conflict has significantly curtailed flows through the strait, which typically handles around one-fifth of global energy trade. Although a small number of tankers managed to pass through on Monday, the route remains highly volatile.
Tehran rejected Washington’s claims of negotiations, calling them an attempt to influence financial markets. Meanwhile, Iran’s Revolutionary Guards reported fresh attacks on US-linked targets, further escalating tensions and dampening hopes of a swift resolution.
Analysts suggest oil prices could remain elevated in the near term, with forecasts indicating a floor between $85 and $90 per barrel and the potential to climb above $110 if disruptions continue. In a worst-case scenario, prolonged closure of the Strait of Hormuz could push prices significantly higher.
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The International Energy Agency said it is consulting governments on potential strategic reserve releases to stabilise markets if needed, as the crisis continues to weigh on global energy supplies and economic outlook.