President Trump called the current round of talks with Iran a "last chance" to end the five-month war, even as Tehran denies any direct negotiations are underway. Oil prices rose on Tuesday, rebounding after a Monday slump tied to the same diplomatic uncertainty.
Oil prices climbed on Tuesday after President Donald Trump said the latest round of negotiations with Iran was a "last chance" to end the five-month conflict, even as Tehran denied that direct talks were taking place.
Trump and Tehran clash over talks
Trump told reporters in the Oval Office late on Monday that talks were underway, at the request of Iran, Saudi Arabia, the United Arab Emirates, Qatar and others. Trump said: "This is a last chance for them to sign a good document."
However, Tehran continues to deny that any direct negotiations with the U.S. are taking place, or that there are plans to hold them in the future. Iran's President Masoud Pezeshkian said on Tuesday that Tehran would keep defending its borders but does not seek an expansion of the conflict, according to state media reports.
Oil rebounds amid Hormuz uncertainty
Iranian foreign ministry spokesperson Esmail Baghaei again poured cold water on the idea of direct negotiations with the United States. Baghaei told a press conference on Monday that there was no immediate plan for talks with the U.S., reiterating that Tehran is only engaged in talks with Oman regarding the Strait of Hormuz.
That followed Trump's decision to call off massive attacks on Iran to allow for talks he said were starting on Monday. The decision lifted market sentiment, and oil prices slumped in response.
Prices rebounded early on Tuesday as traders grew less confident that a diplomatic solution to the conflict, which has upended energy markets, is in sight. West Texas Intermediate futures were up 1.29% at $81.38 per barrel as of 1:35 a.m. ET, while Brent crude, the international benchmark, was up 1.73% at $85.23 a barrel.
Source: US Top News and Analysis
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