Oil Rises 1% as Trump‑Iran Signals Clash

Oil Rises 1% as Trump‑Iran Signals Clash

Oil prices recovered on Tuesday, with Brent crude futures for October gaining 1.4% to $84.94 per barrel and West Texas Intermediate (WTI) September contracts rising 1.0% to $81.14 per barrel, after both benchmarks had fallen roughly 5% in the prior session on expectations of renewed U.S.–Iran talks.

President Donald Trump told reporters in the Oval Office that talks with Iran were under way and described the negotiations as Tehran’s “last chance,” adding that the Strait of Hormuz could be opened “literally by tomorrow.” In contrast, Iran’s foreign ministry spokesperson Esmaeil Baqaei said Iran was not currently negotiating with the United States and was instead coordinating with Oman on a vessel‑traffic route through the Strait of Hormuz.

The divergent statements left market participants cautious; traders were reluctant to place aggressive bets following Monday’s sharp sell‑off, which ING analysts characterized as “fairly overdone” given the lingering uncertainty and warned that Iran’s denial combined with Trump’s warnings could create room for renewed escalation.

U.S. crude oil exports in July dropped to 3.66 million barrels per day, the lowest level in eight months, as additional supply from the Middle East after the June temporary cease‑fire reduced demand for American crude.

The Strait of Hormuz, through which about one‑fifth of global oil consumption normally transits, remained a focal point for market sentiment.