Brent crude futures rose to $72.29 a barrel, gaining 28 cents or 0.39% in Tuesday trading, while US West Texas Intermediate (WTI) climbed 29 cents, or 0.26%, to $68.84 a barrel.

The modest advance marks a stabilization for the market following a significant drop in the previous session, which had been driven by expectations of imminent negotiations between Washington and Tehran.

The price action reflects a shift in market sentiment as investors digest the implications of ongoing diplomatic dialogue.

While the prospect of talks has reduced immediate fears of a supply disruption, the geopolitical backdrop remains fragile.

Traders are balancing the potential for de-escalation against the risk that negotiations could stall or fail, keeping a premium on energy assets.

This development follows a period of heightened volatility in the oil complex, where prices had surged earlier in July amid reports of Iranian drone strikes on Saudi facilities.