Oil prices edged higher on Tuesday, August 4, 2026, recovering from losses recorded in the previous session as renewed uncertainty over the United States-Iran conflict heightened concerns about potential disruptions to crude supplies from the Middle East.
Brent crude futures rose by $1.02, or 1.2 per cent, to $84.79 per barrel by 0632 GMT, rebounding from a seven per cent slide on Monday that dragged prices to a three-week low.
U.S. West Texas Intermediate (WTI) crude also gained 46 cents, or 0.6 per cent, to trade at $80.80 per barrel after shedding more than five per cent in the previous session.
The market had weakened after U.S. President Donald Trump announced on Sunday that he would postpone further military action against Iran while awaiting the outcome of efforts to end the conflict and resolve disagreements over the Strait of Hormuz.
The Strait of Hormuz is one of the world’s most strategic energy corridors, carrying around one-fifth of global crude oil and liquefied natural gas shipments before hostilities disrupted traffic through the waterway.
Hopes of easing tensions, however, were dampened after Iran rejected claims that negotiations with the United States were underway. Iranian Foreign Ministry spokesman Esmail Baghaei said on Monday that no talks had taken place and no meetings had been planned.
ING analysts said the sharp decline in oil prices on Monday did not fully reflect the geopolitical risks still facing the market.
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According to the analysts, uncertainty remains high, warning that previous attempts at diplomacy have often broken down unexpectedly.
They noted that Iran’s denial of negotiations and Trump’s warning of possible action if no agreement is reached continue to leave the door open for further escalation.
The disagreement over the Strait of Hormuz remains a major sticking point. Washington argues that a memorandum of understanding signed in June obliges Iran to keep the vital shipping lane open, while Tehran maintains that the agreement preserves its sovereignty over the passage.
Adding to market concerns, the United Kingdom Maritime Trade Operations agency reported on Tuesday that a cargo vessel sailing about 20 nautical miles northeast of Oman’s Al Khasab said it had been struck by an unidentified projectile, highlighting the persistent security risks in the region.
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