FX.co ★ Crude Rebounds as Middle East Tensions Persist

Crude oil edged higher to trade near $97 a barrel on Tuesday, recovering slightly after a drop of more than 7% in the previous session. The rebound came amid reports that the United States and Iran remain far from an agreement to end their conflict, even as mediator Qatar intensified efforts to narrow differences and prevent a new escalation after the US midterm elections.

Overnight, the US reportedly conducted defensive strikes on Iran, targeting surface-to-air missile systems used against American assets. The strikes appeared limited in scope and did not suggest a return to large-scale combat operations. At the same time, US President Trump reiterated threats of possible military action.

Qatari mediators traveled to Tehran on Monday night to discuss a version of a draft US–Iran agreement that had previously been under consideration. Following the talks, the secretary of Iran’s National Security Council said Washington’s response to Tehran’s demands “was not convincing.” Nonetheless, a spokesperson for Qatar’s Foreign Ministry noted that both the US and Iran were still reviewing the proposals presented by mediators.