Oil prices rise on Tuesday

Oil prices rose more than 1 per cent on Tuesday as uncertainty over a potential US-Iran nuclear deal outweighed the impact of a gradual recovery in shipping through the Strait of Hormuz.

Brent crude futures gained $1.02, or 1.42 per cent, to $73.01 a barrel, while US West Texas Intermediate crude rose 93 cents, or 1.36 per cent, to $69.48 a barrel by 0748 GMT.

Prices found support after Iran’s foreign minister said talks with the United States would not proceed while US threats continued, following President Donald Trump’s warning to “finish the job” unless a deal is reached.

Markets are closely watching the negotiations and their impact on the Strait of Hormuz, a key global energy shipping route. Oil flows through the strait are recovering more slowly than expected despite some vessels resuming transit, while Saudi Arabia is considering expanding pipeline capacity to its Red Sea coast to reduce reliance on the waterway.