Oil prices moved higher on Tuesday after Asian markets reopened. Rising tensions in the Middle East and stalled negotiations between the United States and Iran continued to support the market.
Brent crude, the global oil benchmark, gained 30 cents. It traded at $104.51 per barrel. U.S. West Texas Intermediate (WTI) crude also increased by 31 cents and reached $98.38 per barrel.
The latest gains came after both oil benchmarks rose sharply on Monday. Brent and WTI each posted a 2.8% increase. Investors remain concerned about supply risks linked to regional instability.
Indirect talks between Washington and Tehran have slowed. Both sides continue to defend their demands. This deadlock has reduced hopes for a quick agreement.
Traders are paying close attention to the Strait of Hormuz. The waterway handles a major share of global oil shipments. Any disruption in the route could affect global supply and increase prices further.
The United States and Iran still disagree on several issues. These include sanctions on Iranian ports and compensation-related matters. Iran has also repeated its position on controlling the Strait of Hormuz.
Iran has shown interest in generating more revenue from transit fees. This policy adds another layer of uncertainty for shipping markets and oil traders.
Tim Waterer, an analyst at KCM Trade, said uncertainty remains the main driver behind higher prices. He explained that oil will likely stay above $100 while negotiations remain unresolved.
Waterer added that shipping restrictions in the Strait of Hormuz could keep the market under pressure. Limited maritime movement may also tighten supply expectations.
He believes a diplomatic breakthrough could quickly ease concerns. In that case, Brent prices may fall by $8 to $12 per barrel.
However, tighter sanctions on Iranian ports could create the opposite effect. Such measures may push Brent prices above $115.
Oil traders now continue to monitor political developments closely. Any major shift in negotiations could strongly influence prices in the coming days.
