WTI crude futures rose back above $90 per barrel on Tuesday, retracing part of the previous session’s steep losses after Iran publicly rejected President Donald Trump’s claims of progress toward ending the conflict. Tehran denied that any talks were underway, dismissed Trump’s comments as an attempt to sway financial markets, and launched fresh attacks on US targets, while Israel continued its strikes against Iran.
On Monday, the US oil benchmark had slumped about 10% after Trump postponed planned strikes on Iranian energy infrastructure for five days and asserted that constructive negotiations were in progress. The delay was widely interpreted as an effort to calm energy markets, with Trump remarking that prices would “drop like a rock” once a deal is finalized.
However, the prospects for any meaningful talks, as well as the potential reopening of the Strait of Hormuz, remain highly uncertain, keeping investors on edge. The conflict has effectively shut this critical global chokepoint—through which around 20% of the world’s oil supply normally passes—forcing producers across the Middle East to cut output sharply.