Oil Prices Rise over 4% Amid Supply Concerns as Iran Rejects US Talks

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NEW DELHI — Global crude oil prices jumped more than 4 per cent in early trade on Tuesday despite US President Donald Trump pausing planned strikes on Iran’s energy infrastructure. 

Brent crude rose to around $104 per barrel, up about 4 per cent, while US West Texas Intermediate (WTI) gained 4.39 per cent to $92 (as of 9:30 am).

Between March 2 and March 23, crude prices surged up to 25 per cent, with Brent crude advancing 23.38 per cent to $95.92 from 77.74. The US WTI futures also gained 25.60 per cent to $89.47 from 71.23.

The rebound in crude prices comes after a sharp sell-off in the previous session, when oil had plunged over 10 per cent following Trump’s announcement of a five-day pause on planned strikes and signals of progress in talks with Iranian officials.

However, sentiment turned cautious again after Iran rejected claims of any negotiations.

Iran’s parliamentary speaker, Mohammad-Bagher Ghalibaf, said no talks had taken place with the US, adding that “fake news is used to manipulate the financial and oil markets,” in a post on X.

Further adding to supply concerns, reports suggested that two energy facilities had been hit by airstrikes, raising fears of escalation in the region and contradicting expectations of a near-term de-escalation.

Concerns over potential disruption in the Strait of Hormuz — a critical transit route for nearly one-fifth of global oil and LNG supplies — continued to underpin prices amid the ongoing conflict.

Moreover, Goldman Sachs’ analysts have raised their oil price forecasts for 2026, expecting that Brent crude futures will average $85 per barrel in 2026, an increase of 10.38 per cent from its earlier estimate of $77. 

Similarly, US West Texas Intermediate (WTI) is projected at $79 per barrel, up 9.72 per cent compared to the previous forecast of $72, analyst Daan Struyven said in a note. – IANS

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