Oil prices lifted modestly on Tuesday after falling sharply the day before, reflecting the ongoing risk to Middle East supply.
Front‑month Brent futures rose by $0.62 to $84.39 a barrel, a 0.7% gain, after a 7% drop that sent it to a three‑week low. U.S. West Texas Intermediate (WTI) crude edged up $0.61 to $80.95, up 0.7%, following a fall of more than 5% to its lowest in almost a week.
The rebound came after President Donald Trump announced on Sunday that he was holding off on new attacks on Iran while talks to end the conflict and settle claims over the Strait of Hormuz were ongoing. Iran’s Foreign Ministry spokesman Esmail Baghaei denied that any negotiations were taking place and said no meetings were scheduled.
Tim Waterer, chief market analyst at KCM Trade, said the pause in strikes had removed some pressure from oil prices, but the move remains fragile. He warned that prices could surge again if missiles fire or if tankers in the Strait of Hormuz come under attack.
The Strait of Hormuz is a key point of contention. Washington says a memorandum of understanding signed in June requires Iran to keep the waterway open, while Tehran argues the text preserves its authority.
Barclays analysts noted that for the week ended July 31, crude oil and refined product net exports through the strait averaged 4.2 million barrels per day, up from 3.2 million the previous week.
In the Red Sea, six Saudi‑flagged supertankers altered their course in the Gulf of Aden and are now heading toward southern Africa. Two tankers carrying Saudi oil crossed the Bab el‑Mandeb Strait, according to shipping data released Monday.
Traffic through the Strait of Hormuz between Iran and Oman slowed after reports of vessel attacks. The United Kingdom Maritime Trade Operations received a report on Tuesday of an incident 20 nautical miles northeast of Oman's Al Khasab, where a cargo vessel said it had been hit by an unknown projectile.
Waterer added that while fighting between Saudi Arabia and the Houthis has not stopped energy flows entirely, it has forced longer voyages, higher insurance costs, and occasional diversions, keeping a dual chokepoint risk that prevents oil from fully shedding its geopolitical premium.