Global Oil Prices Surge After Iran Denies Talks With US on Ending West Asia Conflict

Global crude oil prices have started rising again after Iran denied reports of talks with the United States aimed at ending the ongoing war in West Asia. The surge in oil prices is attributed to fears over supply after Iran refuted claims made by US President Donald Trump that a deal was imminent.

During early trading on Tuesday, the price of Brent crude rose by 1.1 percent to reach $101 per barrel, while American West Texas Intermediate (WTI) also increased by 1.8 percent to settle at $89.71.

Previously, oil prices had dropped by 10 percent on Monday after Trump stated that a planned attack on Iranian energy centers had been postponed for five days and that there had been positive discussions with unnamed Iranian officials. However, the market has become volatile again after Iran's Revolutionary Guards dismissed Trump's claims as a 'psychological operation' and announced new attacks on US targets.

Investors remain concerned as approximately 20 percent of the world's oil and gas supply through the Strait of Hormuz remains virtually halted. Major financial institutions like Macquarie have warned that Brent crude could reach $150 per barrel if the Strait of Hormuz does not reopen by the end of April.

Recent attacks on gas infrastructure in Isfahan and Khorramshahr, Iran, have further complicated the energy crisis. Even with the US temporarily lifting restrictions on Russian and Iranian oil at sea to alleviate shortages, the market has not stabilized.

The International Energy Agency (IEA) is consulting with Asian and European governments regarding the potential release of additional strategic reserve oil into the market if necessary.