Oil rises as markets assess supply risk after Iran denies US talks

SINGAPORE — Oil prices rose on Tuesday on supply fear, as Iran denied it had talks with the United States to end the war in the Gulf, contradicting U.S. President Donald Trump who said a deal could be reached soon. Brent futures rose $4, or 4 percent, to $103.94 a barrel at 0400 GMT, while U.S. West Texas Intermediate (WTI) climbed $3.49, or 4 percent, to $91.62. Crude futures dropped more than 10 percent on Monday, after Trump ordered a five-day delay to attacks on Iran's power plants, saying the U.S. had talks with unnamed Iranian officials that produced "major points of agreement." "By shelving the plan to strike Iranian power plants for five days, the U.S. effectively sucked much of the 'war premium' from the oil price," said KCM Trade chief market analyst Tim Waterer. "Today's moderate bounce is just the market finding its footing in the mud. Traders are aware that while the missiles are on hold, the Strait of Hormuz is still far from a clear waterway." The war has all but halted shipments of about one-fifth of the world's oil and liquefied natural gas through the Strait of Hormuz.

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