Oil rebounds above $100 as Iran conflict uncertainty rattles markets

Oil markets swung higher again as traders grew uneasy about the chances of a deal between the United States and Iran that could bring an end to the conflict in the Middle East, according to AFP.

At the same time, stock markets in Europe and the United States showed little movement. This followed a surge a day earlier after Donald Trump postponed potential attacks on Iranian energy facilities and described ongoing discussions with Iran as “very good.”

In Asia, shares initially followed Wall Street’s lead and moved higher, but that momentum faded by the time tradeng shifted to Europe and the US.

Oil, which had dropped sharply on Monday, bounced back with force. Brent crude climbed past the $100-a-barrel mark once more, reflecting renewed concern in energy markets.

Analysts say the situation remains tense. The conflict involving Iran is still unresolved, and the key shipping route through the Strait of Hormuz continues to stay shut.

Kathleen Brooks of XTB noted that markets will need clearer signs of de-escalation to maintain any recovery. She added that more reassuring comments from Donald Trump would be necessary to keep investor confidence alive and to suggest that an end to the conflict may be within reach.