Oil prices reversed a portion of Monday's heavy losses on Tuesday in Asian trading, advancing slightly after benchmarks had dropped by about 5% in the prior session. Traders confronted opposing statements about possible U.S.-Iran engagement and digested fresh data on U.S. crude exports.
As of 20:48 ET (00:48 GMT), Brent Octobers rose 0.4% to $84.14 per barrel, and September West Texas Intermediate futures climbed 0.4% to $80.65 per barrel. Both contracts had fallen roughly 5% in the session before amid hopes that renewed U.S.-Iran talks could ease tensions.
Market attention turned to comments from U.S. President Donald Trump, who on Monday said that talks with Iran were underway and characterized them as Tehran's "last chance" to reach an agreement. Trump also stated in the Oval Office: "We're talking about the strait, the opening of the strait, having it open literally by tomorrow."
Iran's official stance, however, was different. State media cited foreign ministry spokesperson Esmaeil Baqaei as saying Tehran was not currently engaged in negotiations with the U.S. and was instead coordinating with Oman on a route for vessel traffic through the Strait of Hormuz. Those inconsistent public statements reduced traders' willingness to take aggressive positions after Monday's sharp declines.
Monday's selloff followed Trump's announcement that planned U.S. strikes on Iran had been called off and that renewed talks with Tehran would take place. The Strait of Hormuz remains a focal point for crude markets; the waterway normally channels roughly a fifth of global oil consumption, and any change to traffic or security there draws close scrutiny.
Analysts noted that the market is likely to stay highly sensitive to headlines coming out of Washington and Tehran, with short-term price swings tied to the tone and content of public comments from both sides.
Separately, U.S. export data released on Monday showed a decline in shipments. U.S. crude exports fell to 3.66 million barrels per day in July, the lowest level in eight months. The drop in American shipments was attributed in market commentary to increased supply from the Middle East following a temporary ceasefire in June, which reduced demand for U.S. crude abroad.
With both geopolitical headlines and flows of physical oil influencing sentiment, traders are approaching the market with caution as they await clearer signals on diplomacy and supply movements.