Oil climbs 3% as markets weigh potential US-Iran deal

Oil drilling rigs

Oil prices regained momentum despite a stronger US dollar, as markets continue to assess crude flows through the Strait of Hormuz and the potential for Washington and Tehran to reach an agreement to end regional conflict.

Brent crude futures for May delivery rose 2.9% at $102.84 a barrel, after hitting an intraday high of $104.35. West Texas Intermediate (WTI) also climbed by 4% to $91.66 a barrel.

These gains came despite the US dollar index—which measures the greenback against a basket of major currencies—edging up by 0.4% to 99.342 points. The rebound followed an 11% drop during Monday’s session after US President Donald Trump mentioned constructive talks between the US and Iran.

Energy trading giant Vitol noted that oil markets are currently laser-focused on the resumption of higher crude flows through the Strait of Hormuz. Vitol emphasized that a closure of the strait effectively sidelines 10 million barrels per day from the global market.

All eyes are now on the American Petroleum Institute (API) weekly inventory report due later today, to be followed by official data from the Energy Information Administration (EIA) on Wednesday.