Oil Rebounds Above $100 as Markets Watch for U.S.-Iran Talks

Texas — Oil prices rebounded on Tuesday as traders weighed the possibility of diplomatic discussions between the United States and Iran while closely tracking crude supplies moving through the Strait of Hormuz.

Brent crude futures for November climbed $1.29, or 1.29%, to $101.63 a barrel at 0758 GMT. West Texas Intermediate crude for October, which was set to expire on Tuesday, rose 92 cents, or 0.96%, to $96.70 a barrel.

The more actively traded November WTI contract gained 80 cents, or 0.87%, to $93.17 a barrel.

The gains came after four consecutive sessions of losses as investors awaited developments surrounding possible U.S.-Iran talks during the United Nations General Assembly.

U.S. President Donald Trump said he was open to meeting Iranian President Masoud Pezeshkian, who was expected to travel to New York for the UN gathering. Tehran and Washington had traded threats on Sunday, keeping geopolitical risks elevated even as the prospect of renewed diplomacy emerged.

Iran also conveyed conditions to mediators for a return to negotiations, according to a report cited by Reuters.

At the same time, oil markets are dealing with disruptions in several producing regions. Yemen’s Iran-backed Houthis said they had attacked Riyadh and a Saudi Aramco facility in Yanbu, while stepping up efforts to isolate Saudi-backed forces from the Red Sea coast.

In Libya, an armed group closed valve seven on the Sharara crude pipeline, which leads toward the Zawiya port. Libya’s National Oil Corporation said the shutdown had significantly reduced production at the Sharara oilfield.

Two engineers at the field told Reuters that output had dropped by about 200,000 barrels per day and was operating at between 100,000 and 105,000 barrels per day.

Saudi oil exports through the Strait of Hormuz, meanwhile, rose over the weekend, providing additional supplies to international markets.

The combination of geopolitical uncertainty, production disruptions and shifting flows through the strategic waterway is keeping traders focused on the balance between available crude and potential future supply risks.

Global diesel prices have also reached record levels, adding another source of pressure for consumers and businesses that rely heavily on fuel.