Oil remains above $100 per barrel as traders await potential US-Iran talks

Oil prices surpassed the $100-per-barrel threshold as Middle East tensions escalated, keeping markets on high alert. Brent crude surged 0.51% to $100.80 per barrel, while US West Texas Intermediate (WTI) increased 0.43% to $92.77 on Tuesday. However, the rise was restrained as traders weighed potential US-Iran talks against ongoing Gulf tensions.

Recent price declines led traders to reassess their bets, awaiting clearer signs from diplomacy efforts. The US and Iran exchanged warnings on Sunday, with President Donald Trump hinting at a possible meeting with Iranian President Masoud Pezeshkian, who is set to attend the UN General Assembly in New York this week. Meanwhile, Iran hinted at the possibility of resuming negotiations, releasing conditions for re-engagement to mediators over the weekend, according to Al Jazeera.

Simultaneously, geopolitical developments in the region continued to put pressure on oil markets. The Iran-backed Houthis claimed responsibility for attacks on Riyadh and a Saudi Aramco facility in Yanbu, while also intensifying efforts to disrupt shipments from Saudi-backed forces along the Red Sea coast. This disruption has impacted oil movements through the region, with Saudi Aramco increasing exports via the Strait of Hormuz after halting some shipments through Yanbu following attacks on its East-West Pipeline.

Tanker tracking data revealed that Aramco loaded approximately 14 million barrels of crude on seven supertankers inside the Gulf on Sunday. The ongoing conflict has led to a significant drop in traffic through the Strait of Hormuz, with only 12 commodity vessels passing through during the past weekend, compared to 35 the previous weekend, as reported by Reuters.

Tensions between the US and Iran have persisted for over six months, with the two sides remaining in a stalemate.