Oil rises on persistent geopolitical tensions

March 24, 2026 (MLN): Oil prices edged higher during Asian trading on Tuesday, recovering from steep losses in the previous session as investors reassessed geopolitical developments in the Middle East and remained cautious about the durability of any potential de-escalation.

Currently, Brent crude futures went down by $9.49, or 8.53%, to $104.23 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures increased by $3.78, or 4.29%, to $91.91 per barrel by [09:35 am] PST.

The rebound follows a sharp correction on Monday, when Brent crude plunged nearly 11% to hover around $99 per barrel, retreating from last week’s peak above $112.

The sell-off was initially triggered by optimistic signals suggesting possible easing of tensions between the United States and Iran.

Former U.S. President Donald Trump claimed that Washington and Tehran had engaged in “productive discussions” aimed at resolving ongoing hostilities in the region.

He also indicated that planned military actions targeting Iranian energy infrastructure had been temporarily suspended for five days, according to CNBC.

The declaration briefly boosted global equity markets while pressuring oil prices.

However, the optimism proved short-lived after Iranian authorities denied the existence of any such negotiations, casting doubt on the credibility of the claims.

Market participants remained wary as geopolitical risks continued to dominate sentiment, with oil prices rebounding from their lows amid persistent uncertainty.

Adding to the uncertainty is the strategic importance of the Strait of Hormuz, a vital corridor that previously handled nearly 20% of global seaborne oil shipments. Since the escalation of conflict, flows through the strait have been severely constrained.

While Iranian state media recently signaled a willingness to allow safe passage through the waterway, restrictions remain in place for vessels linked to countries considered hostile, further complicating the global supply outlook.

Overall, the modest recovery in oil prices reflects a market caught between fragile diplomatic signals and persistent geopolitical risks, with traders closely monitoring developments for clearer direction.

Copyright Mettis Link News