Brent Rises on US-Iran Uncertainty

Brent climbed toward $85 per barrel on Tuesday, recovering part of the previous session’s sharp losses as uncertainty persisted over efforts to resolve the US-Iran conflict. President Donald Trump said his proposal for talks represents Tehran’s final opportunity to reach a deal and expressed confidence that the Strait of Hormuz will reopen soon. Iran, however, denied that any direct talks with the US are underway, though it said discussions with Oman aimed at increasing shipping through the strait are making progress. Elsewhere, Turkey and Iraq extended a key oil pipeline agreement by another year, strengthening alternative export routes, while Kazakhstan resumed crude flows through the Caspian Pipeline Consortium after a brief disruption. Meanwhile, OPEC+ approved another modest production increase, completing the planned restoration of supply cuts introduced in 2023.

Brent rose toward $85 per barrel on Tuesday, but held most of the decline from the previous session as investors monitored renewed US-Iran negotiations for signs the two sides could reach an agreement on fully reopening the Strait of Hormuz. President Donald Trump said his proposal for talks represents Tehran’s final opportunity to strike a deal and expressed confidence that Hormuz will reopen soon. Iran, however, denied that any direct talks with the US are underway, though it said discussions with Oman aimed at increasing shipping through the strait are progressing. Elsewhere, Turkey and Iraq extended a key oil pipeline agreement by another year, bolstering alternative export routes, while Kazakhstan resumed crude flows through the Caspian Pipeline Consortium following a brief disruption. Meanwhile, OPEC+ approved another modest output increase, completing the planned restoration of production cuts introduced in 2023.

Brent oil fell about 5% to below $84 a barrel on Monday after US President Donald Trump called off a planned military strike on Iran and said fresh negotiations with Tehran would begin. Trump said regional allies, including Saudi Arabia, had urged Washington to pursue diplomacy, prompting him to suspend the attack while efforts continue to secure a deal to reopen the Strait of Hormuz. Iran denied holding direct talks with the US but said discussions with Oman were making progress toward improving shipping through the strategic waterway. Elsewhere, Turkey and Iraq extended a key oil pipeline agreement by one year, supporting alternative export routes. Kazakhstan also resumed crude intake through the Caspian Pipeline Consortium after a brief suspension, although exports remain vulnerable to drone attacks targeting tankers. Meanwhile, OPEC+ approved another modest production increase, completing the planned restoration of supply cuts introduced in 2023.