Oil Edges Higher After Sharp Selloff as U.S. and Iran Offer Conflicting Messages on Talks

Oil prices ticked higher in Asian trading Tuesday, recovering slightly after both benchmarks tumbled nearly 5% in the previous session amid conflicting signals over U.S.-Iran diplomacy.

→ Brent crude (October contract): $84.14/barrel, up 0.4%

→ WTI crude (September contract): $80.65/barrel, up 0.4%

Monday's selloff followed President Trump's announcement that he had called off planned U.S. strikes on Iran and was pursuing renewed talks, which some market participants interpreted as reducing near-term geopolitical risks. On Monday, Trump described the talks as Tehran's "last chance" and said he expected the Strait of Hormuz to reopen "literally by tomorrow."

Iran's government pushed back directly. Foreign Ministry spokesperson Esmaeil Baqaei said via state media that no negotiations with the U.S. were taking place and that Iran was instead coordinating with Oman on a separate route for vessel traffic through the strait, rather than reopening the U.S.-disputed passage itself.

Demand-side developments also remained in focus: U.S. crude exports fell to 3.66 million barrels per day in July, the lowest level in eight months, as increased Middle Eastern supply following June's temporary ceasefire reduced demand for U.S. barrels. The data suggested that supply conditions remained influenced by both geopolitical developments and regional export flows.

The Strait of Hormuz, which normally carries about one-fifth of global oil consumption, remains a key area of focus for energy markets.

Market focus: Market participants continue to monitor official statements from Washington and Tehran for further clarity on diplomatic developments. Analysts said confirmation of any formal talks or changes in shipping activity through the Strait of Hormuz could influence market sentiment in the coming sessions.

Sources: Reuters/Investing.com, Iranian state media (Esmaeil Baqaei), U.S. trade data