FX.co ★ Oil Edges Up on Middle East Uncertainty

WTI crude futures rose toward $92 per barrel on Tuesday, paring recent losses as renewed US military action in southern Iran and ongoing peace talks kept markets on edge. US forces reportedly struck missile launch sites and vessels suspected of preparing to lay mines in southern Iran, with US Central Command stating the operations were intended to protect American personnel in the region. Simultaneously, President Donald Trump said negotiations with Tehran were “going very well,” while cautioning that further strikes could follow if diplomacy falters. Washington and Tehran are said to be discussing a framework to extend the ceasefire by roughly two months, under which the US would lift its blockade and Iran would reopen the Strait of Hormuz. Even with Tuesday’s rebound, oil prices remain more than 10% lower over the past week amid growing optimism over a diplomatic breakthrough between the US and Iran.