Oil Prices Jump as Iran Rejects Claims of US Peace Talks

Crude oil prices climbed Tuesday morning after Iran denied having discussions with the United States about ending Middle East conflicts, contradicting earlier statements from President Trump. The conflicting reports have renewed concerns about oil supply disruptions through a key shipping route.

Crude oil prices gained ground Tuesday morning as traders reacted to conflicting reports about potential diplomatic progress between the United States and Iran regarding ongoing Middle East tensions.

Brent crude futures climbed $1.06, reaching $101 per barrel, representing a 1.1% increase during early trading. Meanwhile, West Texas Intermediate futures jumped $1.58 to $89.71, marking a 1.8% gain.

The price recovery follows Monday’s dramatic sell-off, when oil futures plummeted more than 10% after President Trump announced he was postponing planned strikes against Iranian power facilities for five days. Trump had indicated that Washington held constructive discussions with Iranian representatives, claiming these conversations yielded “major points of agreement.”

However, Tehran quickly disputed these assertions, characterizing them as market manipulation tactics. Iran’s Revolutionary Guards announced fresh attacks on American targets and dismissed Trump’s statements as “worn-out psychological operations.”

Market analyst Tim Waterer from KCM Trade explained the price movements, saying: “By shelving the plan to strike Iranian power plants for five days, the U.S. effectively sucked much of the ‘war premium’ from the oil price.”

Waterer added: “Today’s moderate bounce is just the market finding its footing in the mud. Traders are aware that while the missiles are on hold, the Strait of Hormuz is still far from a clear waterway.”

The ongoing conflict has severely disrupted shipping through the Strait of Hormuz, effectively blocking approximately 20% of global oil and liquefied natural gas transportation. Despite the disruptions, two India-bound tankers successfully navigated the waterway Monday.

Investment firm Macquarie forecasts continued price volatility, stating in a research note: “Even with a possible decrease in tensions after (Monday’s) announcement from President Trump, we expect a price floor of $85–$90 and a natural drift back to the $110 range until the Strait of Hormuz is restored.”

The firm warned that if the strait remains essentially closed through April’s end, Brent crude could surge to $150 per barrel.

Combat operations continue to damage regional energy infrastructure. Recent attacks targeted a gas company facility and pressure-reduction station in Isfahan, Iran’s central city, according to the semi-official Fars news agency. A separate projectile struck a gas pipeline supplying a Khorramshahr power plant.

Washington has temporarily suspended sanctions on Russian and Iranian oil already in transit to address supply shortages. Industry insiders report that traders are now offering Iranian crude to Indian refineries at prices above ICE Brent following this policy shift.

International Energy Agency Executive Director Fatih Birol announced Monday that the organization is consulting with Asian and European officials about potentially releasing additional strategic petroleum reserves “if necessary.”

Energy industry leaders and government ministers gathered at a Houston conference expressed concerns about the broader economic implications of the U.S.-Israel conflict with Iran, though U.S. Energy Secretary Chris Wright minimized the crisis’s severity.