Oil rose back above $106 a barrel on Tuesday after sharp losses on Monday driven by hopes of progress in ending the Iran war. Traders are weighing a possible breakthrough in talks against the chance of renewed US and Israeli strikes.
The oil price rose back above $106 a barrel on Tuesday, recovering after hopes of progress in ending the Iran war triggered sharp declines on Monday. Crude has been volatile in recent days as traders balance the prospect of a deal against the chance of strikes resuming.
Brent crude, the international benchmark, was up 1.3% at $106.09 a barrel in London trading. That followed US strikes on targets on Qeshm Island in the Strait of Hormuz late on Monday, which American officials described as a defensive measure. West Texas Intermediate, the US benchmark, was up 1.8% at $98.18 a barrel.
Monday's drop followed Iranian remarks on negotiations
On Monday, Brent settled 7.6% lower at $104.77 a barrel, while WTI fell 7.4% to $96.46. The drops came after Iranian President Masoud Pezeshkian said the country's supreme leader had granted the government certain authorities in negotiations aimed at securing a deal with the US.
US President Donald Trump has ruled out a new wave of major strikes against Iran before Americans vote in Tuesday's midterm elections.
Friday's high was driven partly by fears of fresh strikes
Brent crude for December delivery climbed as high as $118 a barrel on its final day of trading on Friday, driven in part by fears that the US and Israel would embark on a fresh wave of strikes.
Source: Financial Times
Trading involves risk.
Risk Disclaimer
