Oil prices rebound as Iran denies U.S. talks, supply fears persist

August 04, 2026 (MLN): Oil prices edged higher on Tuesday, recovering part of the sharp losses recorded in the previous session, as persistent concerns over supply disruptions in the Middle East outweighed optimism about a possible diplomatic breakthrough between the United States and Iran.

Currently, Brent crude futures is up, 1.10%, at $84.87 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $0.59, or 0.73%, to $80.93 per barrel by [09:14 am] PST.

The rebound came after Iran dismissed U.S. President Donald Trump's assertion that talks were underway to end the conflict and resolve disputes over the Strait of Hormuz.

Tehran said no negotiations with Washington were taking place and no meetings had been arranged, raising doubts over the prospects for a near-term settlement, according to CNBC.

Prices had fallen on Monday after Trump indicated he had delayed further military action against Iran while awaiting the outcome of potential diplomatic efforts.

The comments briefly eased fears over the security of the Strait of Hormuz, a critical shipping route through which roughly one-fifth of global oil consumption is transported.

Market participants, however, remain cautious as the disagreement over the strategic waterway continues.

Washington maintains that a memorandum of understanding reached in June requires Iran to keep the strait open, while Tehran argues the agreement preserves its authority over the passage.

Shipping activity also showed the heightened security concerns. According to shipping data, several Saudi-flagged supertankers recently altered their routes in the Gulf of Aden, opting to sail around southern Africa, while traffic through the Strait of Hormuz slowed following reports of vessel attacks.

The United Kingdom Maritime Trade Operations (UKMTO) reported on Tuesday that a cargo ship approximately 20 nautical miles northeast of Oman's Al Khasab transmitted a distress call after being struck by an unidentified projectile.

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