Brent crude futures climbed 24 cents, or 0.38%, to $78.15 a barrel on Tuesday, while US West Texas Intermediate (WTI) crude advanced 33 cents, or 0.46%, to $74.19 a barrel.
The modest recovery followed a sharp decline in the previous session, as market sentiment shifted toward tempered optimism regarding ongoing US-Iran peace negotiations.
The rebound reflects a cautious recalibration of risk premiums tied to the Strait of Hormuz.
After fears of a prolonged closure of the critical waterway drove prices lower earlier in the week, traders are now pricing in a reduced probability of immediate, severe disruption.
However, the rally remains fragile, with participants closely monitoring diplomatic developments for any signs of renewed tension.
The Strait of Hormuz remains a focal point for global energy flows, with any sustained disruption posing significant risks to supply chains and freight costs.