Brent crude futures climbed on Tuesday as market participants remained wary of the lack of progress in peace negotiations between the United States and Iran.
The diplomatic stalemate has sustained a risk premium in energy markets, effectively offsetting the positive price impact from a modest recovery in shipping activity through the Strait of Hormuz.
The price action highlights the continued dominance of geopolitical sentiment over operational improvements in the Gulf.
While vessel traffic through the critical chokepoint has shown signs of normalization, traders are prioritizing the uncertainty surrounding the US-Iran dialogue.
This dynamic suggests that any tangible de-escalation in diplomatic channels is required to fully unwind the supply-risk premium currently embedded in oil prices.
The development follows a period of volatile sentiment, where earlier optimism regarding potential peace deals was tempered by reports of stalled talks and ongoing regional tensions.