Oil prices rebounded on Tuesday as uncertainty over the US-Iran peace agreement and the pace of restoring Gulf supply through the Strait of Hormuz kept markets cautious, with crude recovering some losses from the previous session.
Brent crude futures rose 26 US cents to US$83.42 a barrel while US West Texas Intermediate gained 46 US cents to US$81.12 a barrel as of 0108 GMT. The uptick followed a near 5% decline on Monday, when prices hit their lowest close since early March after US President Donald Trump announced a memorandum of understanding to end the conflict between the US, Israel and Iran.
Market sentiment remains fragile as the details of the agreement have yet to be fully disclosed and a permanent truce has not been finalised. Early indications suggest the deal could reopen the Strait of Hormuz and extend a temporary ceasefire for around 60 days while negotiations continue on broader issues including Iran’s nuclear programme.
Iranian officials have described the agreement as an important step towards ending hostilities, although they stressed that a final settlement has not yet been reached. This has left traders cautious about how quickly disrupted oil flows, previously estimated at around 14 million barrels per day at risk during the conflict, can return to normal levels.
The Strait of Hormuz, which typically carries about one fifth of global oil supply, remains central to market direction.
