Oil prices moved higher on Tuesday, recovering part of the previous selloff as markets reassessed the outlook for the US-Iran war. The rebound came as traders remained concerned that energy supplies from the Middle East could still face disruption.
Prices had fallen after US President Donald Trump said on Sunday that he was holding off on new attacks on Iran. That signal of restraint briefly eased fears of an immediate escalation, but it did not remove the wider risk hanging over oil markets.
The latest move upward reflects doubts that a diplomatic resolution will arrive soon. With talks to end the conflict still uncertain, investors continue to focus on the possibility that shipments in the region could remain affected or face renewed pressure.
The back-and-forth in crude prices highlights how sensitive the market remains to developments involving the US, Iran and key Middle East supply routes. For now, the lack of a clear path to de-escalation is keeping risk premiums in place even after sharp short-term swings.
